Bybit users in China turn to VPNs to stay connected

Though Bybit does not support yuan trading, it still accommodates Chinese users who use virtual private networks (VPNs) to access its platform.

A VPN hides an individual’s IP address by redirecting it through another server in a different region, helping users disguise their location.

Since 2021, mainland China has enforced a crypto ban. However, some resident traders have turned to VPNs to bypass restrictions and access platforms like Bybit.

According to Chainalysis, from July 2023 to June 2024, China’s crypto market processed nearly $50 billion in cryptocurrency transactions—highlighting thriving activity despite the ban.

Ben Charoenwong, an associate finance professor at INSEAD’s Asia Campus, told Chainalysis: “Crypto is a way to preserve wealth when things are uncertain and mitigate the effects of authoritarianism in China. It’s a question of property rights.”

In June, Bybit introduced a policy allowing Chinese citizens living overseas to register and use its platform by verifying their identity with official documents like passports or national IDs. This policy clarified Bybit's stance on remaining accessible to the global Chinese diaspora while staying compliant with local regulations.

Exclusive: The third largest offshore exchange Bybit suddenly opened up registration and authentication for users in China. Bybit has long strictly prohibited the registration and use of all Chinese users. The management team has been very cautious about this. pic.twitter.com/m71BdT4KAq

— Wu Blockchain (@WuBlockchain) June 5, 2024

Bybit’s Mainland China Restrictions

While Bybit welcomes overseas Chinese users, it maintains strict compliance with regulations in mainland China. The platform actively blocks IP addresses originating from the region and prohibits yuan trading to avoid violating local laws.

Ben Zhou, Bybit’s CEO, has publicly explained this approach, emphasizing the platform's caution in navigating Chinese regulations. “What the Chinese government dislikes the most about crypto is that it can facilitate capital outflow. So we won’t touch this red line,” he said.

This sentiment aligns with Bybit's operational policies, as highlighted in recent updates shared by industry insiders.

Embarrassingly, on the same certification page, Bybit still states: Bybit does not offer its services or products in certain jurisdictions, including the United States, Mainland China, Singapore, Quebec (Canada), Ontario (Canada), Iran, Sudan, and Syria. pic.twitter.com/kPuCopkmrp

— Wu Blockchain (@WuBlockchain) June 5, 2024

Opportunities in Hong Kong

Despite its restrictive policies in mainland China, Bybit sees potential in Hong Kong, a special administrative region. The exchange plans to reapply for a crypto license next year after withdrawing its previous application in May.

Zhou expressed optimism about the move, suggesting that securing a license in Hong Kong could help Bybit attract top talent and strengthen its global presence.