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Cryptocurrency exchange Bybit has confirmed that mainland Chinese users can access its platform through virtual private networks (VPNs). However, trading with China’s yuan remains prohibited to comply with regulatory restrictions.
 

Bypassing Restrictions Without Crossing Regulatory Lines

In a media briefing, Bybit CEO Ben Zhou emphasized the platform’s cautious approach to operating in the region. “The Chinese government is particularly concerned about cryptocurrencies enabling capital outflows,” Zhou explained. “We ensure we don’t cross that red line.”

While mainland users can register using overseas credentials, such as national IDs and passports, access from mainland IP addresses is blocked, making VPNs necessary. Bybit’s decision to allow such registrations earlier this year was driven by strong demand and manageable risk assessments.

Despite this move, the yuan restriction has limited the influx of mainland users. Zhou highlighted that the initiative primarily serves the “overseas Chinese community,” although some mainland users have taken advantage of the opportunity.
 

A Growing Global Presence

Founded in 2018, Bybit initially focused on derivatives trading but has since become one of the largest cryptocurrency exchanges globally. Its user base tripled in 2024, growing from 20 million to nearly 60 million, and its 24-hour trading volume ranks it as the third-largest exchange globally, according to CoinGecko.

Bybit also benefited from the collapse of competitor FTX, capturing market share after FTX’s leader, Sam Bankman-Fried, was convicted of fraud and sentenced to 25 years in prison.
 

Regulatory Challenges in Hong Kong

Bybit’s expansion has not been without challenges. In 2024, the exchange withdrew its application for a licence under Hong Kong’s new crypto regulatory framework due to a compliance officer conflict. Zhou stated the company plans to reapply in early 2025 once the issue is resolved.

A Hong Kong licence, he added, would strengthen Bybit’s reputation and help attract talent, though he acknowledged that Hong Kong’s crypto market remains relatively small.
 

Strategic Adaptation

Bybit’s approach reflects its strategy to navigate complex global regulations while maintaining access for its growing user base. By complying with strict restrictions in mainland China and exploring opportunities in more crypto-friendly jurisdictions, Bybit aims to solidify its position as a global leader in cryptocurrency trading.