In a surprising move, Bybit has recently removed China from the list of countries whose citizens are restricted from using its services. This decision was confirmed by CryptoSlate on June 5 through the exchange’s website. While China is now off the restricted list, other countries such as the United States, the United Kingdom, Canada, Singapore, and Hong Kong remain restricted. It is unclear if Bybit has obtained licensing to operate in China, but industry experts speculate that this bold move could potentially attract millions of Chinese users to the platform.
Market Reaction and Concerns
Following this announcement, Wu Blockchain reported that Bybit is now allowing Chinese users to register on its platform. However, the journalist also mentioned that competitors of Bybit have already opened registration for Chinese users, causing panic among Bybit’s internal employees. The ramifications of this decision are still unknown, and it remains to be seen how Bybit will navigate the regulatory landscape in China.
As the second-largest crypto exchange by trading volume according to CoinMarketCap, Bybit has processed over $4 billion worth of trades in the last 24 hours. Additionally, customers hold over $7 billion worth of assets on the platform based on data from the blockchain analytics firm Nansen’s exchange reserve dashboard. Despite its significant presence in the market, Bybit has remained silent on this recent development and has not responded to requests for comment.
Bybit’s decision to allow Chinese users to access its platform is surprising considering China’s strict regulatory stance towards the crypto industry. China has a history of prohibiting crypto transactions since 2013 and extended the ban to crypto mining activities in 2021. This regulatory environment has led to several crypto platforms, including Binance and HTX (formerly Huobi), halting their services in mainland China after authorities restricted overseas exchanges from serving mainland investors. Despite these restrictions, reports suggest that Chinese crypto traders have found alternative ways to participate in the market.
Bybit’s controversial decision to open its doors to Chinese users raises questions about the company’s compliance with regulatory requirements and its strategic direction in the ever-changing crypto landscape. As the situation unfolds, it will be crucial to monitor how Bybit addresses the concerns of internal employees and navigates the complexities of operating in a market with stringent regulatory measures like China.
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