Bybit, one of the world’s largest cryptocurrency exchanges by trading volume, has clarified its policy for mainland Chinese users. While individuals in mainland China can trade on the platform using a virtual private network (VPN), trading in yuan remains off-limits, the exchange announced.
In a media briefing on Tuesday, Bybit’s co-founder and CEO, Ben Zhou, explained the platform’s cautious approach. Zhou emphasised that while Bybit permits mainland Chinese users to trade via VPN, it does not accept transactions in China’s currency, the yuan. “What the Chinese government dislikes the most about crypto is that it can facilitate capital outflow,” Zhou remarked. “So we won’t touch this red line.”
Opening up to mainland users through overseas channels
Earlier this year, Bybit announced that users from mainland China could trade on the platform using overseas credentials. This decision was influenced by strong user demand and the company’s assessment that the associated risks were manageable. Starting in June, Bybit began accepting registrations using Chinese national IDs and passports. However, the platform continues to block access from mainland IP addresses, necessitating VPNs to bypass the restrictions.
Bybit noted that the initiative caters to the “overseas Chinese community.” Nevertheless, Zhou acknowledged that some mainland users also took advantage of the opportunity. Despite this, the platform has not seen a significant influx of new users from the mainland, which Zhou attributed to the yuan trading restriction.
Founded in 2018 by a team with Chinese roots, Bybit initially focused on derivatives trading. Like many other crypto platforms with ties to China, the exchange withdrew from the mainland market following Beijing’s crackdown on the industry. Zhou highlighted that while Hong Kong has been given some leeway to foster crypto-related innovation, mainland China continues to enforce strict bans on activities like crypto trading and mining.
Bybit’s growth and plans
Bybit’s global influence has grown significantly over the past year. The platform’s registered user base has tripled, rising from 20 million in 2023 to nearly 60 million in 2024. According to CoinGecko, its 24-hour trading volume recently ranked it as the third-largest crypto exchange globally, behind Binance and ahead of Coinbase.
The exchange also capitalised on opportunities following the collapse of FTX, a major competitor once led by Sam Bankman-Fried, who is now serving a 25-year prison sentence in the US for fraud.
Despite its expansion, Bybit faced regulatory hurdles in Hong Kong this year. The exchange applied for a licence under the city’s new crypto regulatory framework but withdrew its application in May. The decision was tied to a compliance issue, as the company’s compliance officer held a conflicting role with a previous employer. Zhou confirmed that Bybit will reapply for the licence in early 2025 once a new compliance officer is appointed.
According to Zhou, obtaining a Hong Kong licence would bolster Bybit’s reputation and help attract talent. However, he downplayed its significance for expanding into Hong Kong’s relatively small crypto market.
Bybit’s approach underscores its strategy to navigate global regulatory challenges while maintaining access to its growing user base. Its focus remains on adhering to mainland restrictions while seeking opportunities in more crypto-friendly jurisdictions.
