Bybit Resumes User Registration in China Despite Regulatory Issues

Bybit, the third largest offshore crypto exchange, has resumed user registration and identity verification in mainland China.

This development is unexpected, given the Chinese government’s strict stance on cryptocurrency trading and activities. Bybit had previously ceased operations in China in accordance with local laws prohibiting cryptocurrency trading and mining.

Despite reopening registrations for Chinese users, Bybit’s certification page lists Mainland China among jurisdictions where its services are not available. This contradiction has yet to be resolved by Bybit management, leaving stakeholders uncertain about the exchange’s strategic direction and regulatory compliance. The move has raised questions about a possible change in China’s approach towards cryptocurrencies, although no official statement has been made by Chinese authorities.

Market Response to Bybit’s New Offerings

In addition to reopening registration in China, Bybit has introduced new investment products to the market. The exchange’s Bitcoin Wealth Management Fund, which quickly sold out within seven hours of its initial offering, indicates strong market demand for cryptocurrency investment opportunities. This rapid adoption reflects investor confidence in Bybit’s offerings despite regulatory uncertainties surrounding its operations in various regions.

Bybit’s re-entry into the Chinese market amid ongoing challenges in other jurisdictions. The exchange recently withdrew its Hong Kong license application, citing high regulatory costs and operational challenges related to the city’s new laws for cryptocurrency companies. This decision highlights the international situation cryptocurrency exchanges‘difficulties navigating diverse and often fragmented regulatory landscapes.

In France, Bybit has also encountered legal problems, with the Financial Markets Authority (AMF) accusing the exchange of operating without the necessary authorization. Such regulatory challenges highlight the complexity of offering cryptocurrency services in multiple countries, each with legal requirements and compliance standards.

Speculation on Chinese Cryptocurrency Policy

The unexpected resumption of Bybit’s services in China has led to speculation about possible changes in the country’s cryptocurrency policy. China has maintained a strict regulatory stance on cryptocurrencies, initially banning crypto transactions in 2013 and extending the ban to cryptocurrency mining activities in 2021. This regulatory environment has constrained several crypto exchanges, including Binance and HTX (formerly Huobi), to cease operations in mainland China. .

Despite the ban, reports indicate that crypto traders in China continue to find other ways to engage in the market. According to a Channel Analysis ReportChina is the third Asian country with the highest crypto activity, with Chinese crypto transactions worth $86.4 billion between 2022 and 2023. This data suggests resilient demand for cryptocurrency trading in China , regardless of regulatory restrictions.

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