Bybit, one of the world’s largest cryptocurrency exchanges by trading volume, has announced that mainland Chinese users can access its platform via virtual private networks (VPNs). However, the exchange has reiterated that it will not facilitate trading in China’s currency, the yuan, citing regulatory concerns.
Ben Zhou, Bybit’s co-founder and CEO, explained during a media briefing that the company decided to allow mainland Chinese citizens to trade overseas following repeated user requests and an assessment of manageable risks. He emphasized that Bybit has no intention of crossing regulatory boundaries set by Beijing.
“What the Chinese government dislikes the most about crypto is that it can facilitate capital outflow,” Zhou said. “So we won’t touch this red line.”
Despite enabling registrations using mainland Chinese identity documents, including national IDs and passports, Bybit continues to block mainland IP addresses. To access the platform, users within mainland China must connect via a VPN that reroutes their IP address to another jurisdiction.
This policy shift was initially introduced in June as part of Bybit’s efforts to attract the “overseas Chinese community.” However, Zhou acknowledged that new user growth from mainland China has been modest, likely due to the exchange’s decision not to accept yuan transactions.
Navigating a Changing Regulatory Landscape
Bybit’s history reflects the broader challenges faced by cryptocurrency exchanges originating from mainland China. Founded in 2018 with a focus on derivative products, the platform exited the Chinese market following Beijing’s stringent crackdown on cryptocurrency trading and mining.
While Hong Kong has been allowed to develop its cryptocurrency industry under a distinct regulatory framework, the mainland remains firmly opposed to commercial crypto activities. In response, Bybit has sought to adapt its operations to align with these restrictions.
Earlier this year, Bybit briefly applied for a regulatory licence in Hong Kong but withdrew the application in May due to a conflict of interest involving its compliance officer. Zhou confirmed that the company plans to reapply for the licence in early 2025 after resolving compliance concerns.
Rapid Growth Amid Industry Turmoil
Despite regulatory hurdles, Bybit has experienced significant growth. Following the collapse of FTX, the exchange quickly filled a market void, achieving a 24-hour trading volume that ranks it as the third-largest cryptocurrency exchange globally, behind Binance and ahead of Coinbase, according to CoinGecko.
The number of registered users on Bybit tripled from 20 million in 2023 to nearly 60 million in 2024. Zhou attributed this success to Bybit’s focus on compliance and innovation, which he believes positions the platform to thrive in a competitive market.
As Bybit continues to expand, it remains committed to navigating complex regulatory environments while adhering to restrictions, particularly those governing the mainland Chinese market.
