December 06, 2024
By Our Correspondent
Ben Zhou, the CEO of Bybit, stated during a media briefing on December 3 that the platform does not plan to accept China’s local currency in the near future.
However, he confirmed that Chinese citizens can access the platform for trading purposes from abroad or by utilizing a virtual private network (VPN).
Zhou remarked, “The primary concern of the Chinese government regarding cryptocurrency is its potential to enable capital outflow. Therefore, we will not cross this boundary.” Since June, Bybit has permitted Chinese nationals to register on the platform using identification documents from mainland China, such as national IDs and passports, while still blocking access from Chinese IP addresses.
This decision was initially aimed at attracting Chinese citizens residing overseas. Zhou further explained that individuals currently in China can circumvent the government’s cryptocurrency restrictions by connecting through a VPN to an IP address located outside the country. Despite this, he noted that the exchange has not experienced a significant influx of users from mainland China.
During the briefing, it was disclosed that Bybit welcomed 40 million new users this year, raising its total user base to nearly 60 million, which represents an increase of almost 300% compared to last year’s total of 20 million registered users. Additionally, Zhou indicated that the company intends to reapply for a license in Hong Kong in the first quarter of the upcoming year. Bybit had previously submitted an application for a Hong Kong license in January but withdrew it in May.
The Chinese government has permitted the development of the cryptocurrency sector in Hong Kong; however, it has upheld a prohibition on crypto trading within the mainland since 2021. Despite this restriction, Chinese traders have continued to participate in cryptocurrency trading activities. Data from Chainalysis indicates that between July 2023 and June 2024, the Chinese cryptocurrency market has recorded nearly $50 billion in transaction volume.