A recent announcement from Bybit, a major cryptocurrency exchange, sparked controversy and excitement in the crypto community as it suggested the potential return of Chinese users, investors, and traders to the market.
Not so fast
Bybit, one of the top three cryptocurrency exchanges globally by trading volume, declared that Chinese nationals are now able to open accounts and trade digital assets on its platform, and this caused massive hype.
After this, they later clarified that this doesn’t apply to Chinese citizens residing actually in China, due to local regulations prohibiting such activities, and this clarification has stopped the initial speculation that China might be reversing its strict stance on cryptocurrencies.
Bybit recently allowed cryptocurrency membership registrations from China, which led to rumors of a shift in Chinese policy towards cryptocurrencies, so they had to clarified that the new registrations are only for Chinese nationals living abroad.
“Overseas Chinese users will now be able to register and open accounts on the Bybit platform, enjoying the same benefits as our existing user base.”
Lawful business
The company emphasized its commitment to complying with all applicable regulations in the markets it operates in, and it expressed intentions to expand their operations in Hong Kong, the United Arab Emirates, and the European Union.
This means that Chinese users residing outside of China in regions where cryptocurrency trading is legal can register on Bybit.
Power moves
China has maintained a strict ban on crypto activities within its borders.
This includes not only trading but also Bitcoin mining, which was once a significant industry in the country.
Before the ban, China was the largest center for crypto mining globally and home to major mining equipment manufacturers like Bitmain, and the crackdown on Bitcoin mining is believed by some experts to have contributed to the abrupt end of the 2021 bull run.
Despite the official ban, there are persistent rumors that a substantial amount of Bitcoin’s hashrate still originates from China.
Bybit’s move to enable overseas Chinese nationals to trade suggests an ongoing demand and interest in cryptocurrencies among Chinese citizens, even as they have to navigate not so friendly domestic regulations.
One can speculate that if China were to ease its restrictions, it could have a significant impact on the global crypto market, potentially leading to increased liquidity and market activity, thus, higher prices.
