Bybit Opens Registration for Clients from China
Date: 2024-06-06 Author: Gabriel Deangelo Categories: BUSINESS
Cryptocurrency exchange Bybit has attracted attention by opening registration and KYC verification to users from China. This event caused a lot of discussion in the cryptocurrency community and raised a number of questions about the future of the company's strategy.
Well-known crypto journalist Colin Wu reported that Bybit has opened registration for users from China. Wu shared screenshots of the registration form on the Bybit website, where China is listed among the available jurisdictions. The move came as a surprise given existing bans on cryptocurrency transactions in mainland China.
KYC Verification for Chinese Users
According to Colin Wu, Chinese users can complete KYC verification on Bybit using various documents such as ID cards, passports, driver's licenses or residence permits. This innovation creates the opportunity for Chinese investors to legally trade cryptocurrencies on the platform, despite official bans.
Interestingly, the FAQ section on the exchange’s website states that Mainland China is still among the prohibited jurisdictions. However, in the Terms of Service section, China is no longer listed among the countries where the exchange does not provide its services. According to this section, Bybit prohibits its activities in countries such as the US, UK, Singapore, Canada, North Korea, Iran, Uzbekistan, Syria, temporarily occupied territories of Ukraine and Cuba.
Refusal of Registration in Hong Kong
Colin Wu also linked Bybit's decision to open registration to users from China with its refusal to obtain a license in Hong Kong. Let us recall that on May 31, 2024, the local regulator officially banned the activities of crypto exchanges that were not registered. Bybit was among the companies that withdrew their registration applications.
Information has emerged that the Hong Kong regulator has set a condition for obtaining a license - a guaranteed refusal to serve clients from Mainland China. This could be one of the reasons why Bybit decided to abandon registration in Hong Kong and instead open access to Chinese users.
Community Reaction and the Future of Bybit
At the time of writing, Bybit had not commented on the situation. Opening up registration to Chinese users could lead to more customers and trading volume on the platform, but it also raises questions about the exchange's legal implications and next steps. The cryptocurrency community continues to closely monitor developments.
Bybit's decision to open registration to Chinese users is a bold move that could have a significant impact on the company's future. While the exchange seeks to expand its user base, it faces challenges posed by regulatory restrictions and legal risks.
