Blockchain
Bybit, a major cryptocurrency exchange, opens trading to Chinese users living abroad
Bybit, the world’s second-largest cryptocurrency exchange, has started allowing mainland Chinese citizens living abroad to trade on its platform, as the company seeks to attract new users amid China’s strict cryptocurrency trading ban. country and increasing regulatory scrutiny around the world.
The Dubai-based company is allowing the “overseas Chinese community” – mainland users who reside outside their home country – to open accounts and trade on its platform, Bybit said in a statement late Thursday.
Users can register with mainland Chinese identity documents, including national IDs and passports, Bybit’s registration page showed.
According to tests conducted by the Post on Thursday, the exchange continues to block account requests that originate from mainland China Internet Protocol (IP) addresses or are tied to phone numbers in the country.
An IP address indicates the approximate geographic location of a device connected to the Internet, but China-based cryptocurrency investors They commonly use virtual private networks to mask their actual location and evade IP address restrictions.
When asked about the methods it uses to check whether a Chinese user lives outside the country, Bybit declined to comment beyond referring to its “know your customer” statement and guidelines, which state that users who have a withdrawal limit daily of approximately $2 million must submit proof of address.
However, by blocking Chinese IP addresses, Bybit’s measures may already be more stringent than those of other exchanges.
Binance, founded in Shanghai in 2017, has continued to do so allow access by users in China even after closing most of its operations there. Mainland users could also register with their national ID number by simply selecting Taiwan as their location.
Bybit said Thursday that it “remains committed to adhering to all applicable regulations” in the markets in which it operates.
The company’s announcement came after cryptocurrency news site Wu Blockchain reported on Wednesday that the exchange had opened registration for “users in China,” fueling speculation that the country was easing its crackdown on cryptocurrencies .
Bybit began blocking mainland Chinese IP addresses in September 2020 and later said it would shut down all accounts registered with mainland Chinese phone numbers. The following year, 10 government agencies on the continent jointly declared cryptocurrency activities illegal.
Bybit said its latest move was made “in response to the growing demand for safe, reliable and easy-to-use cryptocurrency trading platforms among Chinese expatriates and international Chinese communities.”
Bitcoin prices have increased this year. Photo: Reuters
Commercial considerations may have driven Bybit’s decision to extend access to some Chinese users, according to Liu Honglin, founder of Shanghai-based law firm Mankun, which focuses primarily on blockchain matters.
Bybit could aim to attract more retail investors in a cryptocurrency bull market, especially with global regulatory scrutiny expected to become increasingly stringent, Liu said.
Both bitcoin and ether prices have risen more than 60% this year.
Their withdrawals came after the city required applicants for licenses of its virtual asset trading platform, as well as its parent and related entities, not to accept residents of mainland China as customers – one of many rules that authorities are enforcing in a restrictive crypto regime.
Bybit said Thursday that while it cannot currently serve Hong Kong residents, it is “proactively trying to understand the licensing requirements and expectations set forth” by the city’s relevant authorities.
Additional reporting by Wency Chen