ByBit, the Third Largest Offshore Exchange, Opens Trading for Chinese Users: Can They Now Purchase Bitcoin and XRP?

• Bybit now opens its doors to Chinese registrants, reversing their earlier comprehensive prohibition and indicating a change in business strategy.
• The allowance of Chinese users on Bybit spurs internal debates over anticipated regulatory issues and conformity dilemmas.

Bybit, recognized as the third most significant cryptocurrency trading platform offshore, has recently revised its stance on Chinese user registration. This new direction moves away from the previously enshrined policy prohibiting Chinese participants and showcases a more cautious stance by the company’s leaders.

Nevertheless, industry data points to a significant untapped pool of prospective Chinese users, which could be reaching the tens of millions. Bybit’s competitors have stepped ahead by allowing access to this populous market segment, which likely influenced Bybit’s new strategy. Yet this development does not come without its share of internal apprehension over possible regulatory backlashes.

Curiously, while Chinese users are now welcomed on the platform, Bybit’s certification page still names China among the jurisdictions excluded from its offerings. This contradiction sheds light on the complicated regulatory landscape that Bybit has to confront. In addition to China, the exchange also restricts its services from being accessed within the United States, Singapore, Quebec, Ontario, Iran, Sudan, and Syria.

Sharing insights on the matter, our editor-in-chief and a notable cryptocurrency analyst underscore the significance of Bybit’s decision for the trading ecosystem.

🚨BREAKING: Bybit Becomes Accessible to Chinese Clients for #Bitcoin and #XRP Purchases! 🚨

Bybit, ranking as the third-largest offshore exchange, surprisingly lifts its long-standing restriction on Chinese user registrations. This altered approach comes after a phase of rigid… pic.twitter.com/fM287XxOGM

— Collin Brown (@CollinBrownXRP) June 5, 2024

Bybit’s struggles with regulations are not exclusively tied to China

The firm also recently retracted its request for licensing in Hong Kong, where demanding regulations impose hardships on crypto industries. Given that Hong Kong forbids business activities in mainland China, this could mean that Bybit could possibly abandon the quest for a Hong Kong license. Presently, Bybit has its headquarters in Dubai which may offer relief from the regulatory pressures of China.

Exclusive: Bybit has unexpectedly offered registration and authentication to Chinese users. For a lengthy duration, Bybit has stringently forbade the registration and use of its services by Chinese citizens. The caution demonstrated by the management team has been noticeable. pic.twitter.com/m71BdT4KAq — Wu Blockchain (@WuBlockchain) June 5, 2024

The relocation of Bybit’s operations from Singapore to the less stringent Dubai may have also contributed to the decision to reopen registrations for the Chinese market. This move to Dubai could grant Bybit greater maneuverability in its global business dealings.

Despite impediments, Chinese users have managed to persistently utilize Bybit’s services by evading VPN blockades and acquiring accounts from disparate regions, showcasing the relentless desire of the Chinese populace to engage in crypto trading.

Bybit previously withdrew its application for a licensure in Hong Kong. Hong Kong strictly prohibits any business development on the Chinese mainland. This also signals that Bybit might relinquish its intentions of acquiring a Hong Kong license. Dubai is now the headquarters for Bybit.

— Wu Blockchain (@WuBlockchain) June 5, 2024

Bybit confronts regulatory difficulties not only in China and Hong Kong but elsewhere too

French regulatory authority, the Autorité des Marchés Financiers (AMF), accused Bybit of functioning without an official license, underscoring the disjointed and onerous legislation that international cryptocurrency exchanges encounter. Despite these hurdles, Bybit’s decision to reopen to Chinese clientele highlights the tangled web of legalities and perils associated with global cryptocurrency interactions. This suggests a deliberate attempt by the company to broaden its customer base while navigating between the divergent international regulations.