Bybit welcomes Chinese users in spite of regulatory challenges

Bybit has recently removed China from the list of countries whose citizens are restricted from using its services.

CryptoSlate confirmed this update on June 5 through the exchange’s website, noting that other countries like the United States, the United Kingdom, Canada, Singapore, and Hong Kong are still restricted.

It remains uncertain if Bybit has obtained licensing to operate in China, but there is speculation that this move could potentially attract millions of Chinese users to the platform.

Reports from Wu Blockchain today indicated that the crypto exchange is now allowing Chinese users to register. The journalist mentioned:

“Bybit’s rivals have already opened registration for Chinese users, causing concern among Bybit internal staff.”

According to CoinMarketCap, Bybit ranks as the second-largest crypto exchange based on trading volume, handling over $4 billion in trades within the past 24 hours. Nansen’s exchange reserve dashboard shows that customers currently hold assets worth over $7 billion on the platform.

As of now, Bybit has not publicly addressed this development or responded to requests for comments.

China’s Stance on Cryptocurrency

The decision by Bybit to enter the Chinese market comes as a surprise, considering China’s stringent regulations on the crypto sector. China initially banned crypto transactions in 2013 and later prohibited crypto mining activities in 2021.

This strict regulatory landscape compelled several crypto platforms, including Binance and HTX (formerly Huobi), to stop catering to customers in mainland China after authorities restricted overseas exchanges from serving mainland investors.

Nevertheless, reports suggest that crypto traders in China have found alternative ways to engage in the crypto market. A Chainalysis report ranked China as the third Asian country with the highest crypto activities, indicating that Chinese crypto transactions amounted to $86.4 billion between 2022 and 2023.

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