Regulation
Bybit opens its doors to Chinese users despite regulatory hurdles
Bybit removed China from the list of countries whose citizens cannot use its services.
CryptoSlate confirmed this development on June 5 via the exchange site website and noted that the list still includes other countries such as the United States, United Kingdom, Canada, Singapore and Hong Kong.
It is unclear whether Bybit has obtained a license to operate in China. However, market observers believe the move could attract millions of Chinese users to the platform.
Earlier today, Wu Blockchain reported that the crypto exchange was allowing Chinese users to sign up. The journalist added:
“Bybit’s competitors have essentially opened registration to Chinese users. However, Bybit’s decision also caused panic among internal employees.”
According to CoinMarketCap, Bybit is the second largest cryptocurrency exchange by trading volume, processing over $4 billion in transactions in the last 24 hours. Foreign exchange reserve from blockchain analysis company Nansen dashboard shows that customers hold more than $7 billion in assets on the platform.
As of press time, Bybit has not publicly commented on the development or responded to requests for comment.
China’s anti-crypto stance
Bybit’s decision to establish a presence in China is unexpected, given the country’s strict regulatory stance towards the crypto industry. China initially banned crypto transactions in 2013 and extended the ban to cryptocurrency mining activities in 2021.
This anti-crypto regulatory environment has forced several crypto platforms including Binance And HTX (formerly Huobi), at stop serving customers in mainland China after authorities banned foreign exchanges from providing services to mainland investors.
Despite the ban, reports suggest that crypto traders in China have found alternative ways to participate in the crypto market. An on-chain analysis report ranked China as the third Asian country with the highest crypto activities, stating that Chinese crypto received transactions worth $86.4 billion between 2022 and 2023.