June 7, 2024
By Sharan Kaur Phillora
In a surprising development, Bybit, the third-largest offshore cryptocurrency exchange, has reportedly opened its registration and authentication services to users in China. This move marks a significant shift in Bybit’s operational policy, as the platform had previously restricted access to Chinese users due to the country’s stringent regulations on cryptocurrency trading.
Here’s what we know:
According to reports from WuBlockchain, Bybit’s decision to allow Chinese users to register and authenticate has sparked considerable industry speculation. The exchange’s website has removed China from its list of restricted countries, although it remains unclear whether Bybit has secured the necessary licensing to operate within China. This development comes despite China’s ongoing anti-crypto stance, which includes a comprehensive ban on crypto transactions and mining activities since 2021.
China’s regulatory environment has historically been hostile towards cryptocurrency activities, with the government repeatedly emphasizing the risks associated with crypto trading and its potential to disrupt the country’s economic and financial order. Despite these restrictions, Chinese investors have continued to find ways to participate in the crypto market, often through overseas platforms or by using Hong Kong as a gateway due to its more lenient regulatory framework.
Bybit’s move to open its services to Chinese users could potentially attract millions of new users to the platform, given the high level of crypto activity in China. According to a Chainalysis report, China ranked as the third Asian country with the highest crypto activities, with transactions worth $86.4 billion between 2022 and 2023.
The decision has also raised questions about the future of crypto regulation in China and whether this move signals a potential shift in the country’s stance towards cryptocurrency trading. As of now, Bybit has not publicly commented on the development or responded to requests for clarification.
This unexpected policy change by Bybit could have significant implications for the global crypto market, particularly in how exchanges navigate regulatory challenges in different jurisdictions.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.
