China has emerged as Binance's largest market, contributing over $90 billion to the trading volume in May.
The platform now faces allegations of assisting Chinese users in bypassing restrictions.
WSJ reported that most of this volume comes from futures trading, according to an internal platform at Binance named "Mission Control."
Despite the massive numbers, Binance has denied any direct links to China.
With an extensive user base of over 900,000 active accounts and 5.6 million registered users as of May, the exchange collaborates regularly with Chinese authorities to address potential illicit activities.
Beyond China, Binance also recorded substantial trading volumes in South Korea, Turkey, Vietnam, and the British Virgin Islands, marking its presence in diverse markets.
Internal documents suggest that the exchange directed users to visit specific websites with Chinese domain names, which then redirected them to the global exchange platform.
Furthermore, Binance CEO Changpeng 'CZ' Zhao allegedly promoted a Palau program selling residency cards, which was initially intended to assist Chinese users but was later disassociated with the exchange.
In their quest to access Binance's services, many Chinese users have resorted to using Virtual Private Networks (VPNs) to evade China's government crypto ban.
While Binance has not provided further commentary on China's trading volume, the platform has consistently denied any direct connections with the Asian country.