China announced the ban on cryptocurrency in September 2021, declaring all related transactions to be illegal. However, Bybit recently allowed overseas Chinese users to undergo KYC identity verification, hoping to meet the needs of its users.
Cryptocurrency exchange Bybit has long been restricted by China’s strict regulatory stance on the cryptocurrency industry, leading to a complete ban on all Chinese users registering and using the platform. However, according to a report by Wu Shuo Blockchain, mainland Chinese ID cards can now pass the platform’s first-level KYC identity verification. Since Bybit did not provide advance notice or explanation of this change to its internal staff, some employees felt uneasy.
A few hours after Bybit’s official announcement, the platform formally responded to the media, stating that it has officially opened its services to Chinese users residing overseas. The company stated in a release that while this sudden move by Bybit may have the opportunity to further seize the competitive market, the future regulatory risks from China due to the continued ban on cryptocurrency remain uncertain. It also remains to be seen whether Chinese users living overseas will be willing to undergo KYC verification, which may require more observation over time.
Source: Wu Shuo Blockchain
Bybit withdrew its Hong Kong license application earlier this year. At the end of January, Bybit submitted a virtual asset trading platform license application to the Hong Kong Securities and Futures Commission through its Hong Kong entity, Spark Fintech Limited. However, by May 31, Bybit’s Hong Kong entity and many other exchanges withdrew their Hong Kong license applications and ceased operations in Hong Kong as required.
In March, the Hong Kong Securities and Futures Commission had first listed Bybit as a suspicious virtual asset trading platform and categorized its encrypted products as suspicious investment products. The Commission’s statement mentioned that Bybit offered cryptocurrency trading services to Hong Kong investors in multiple jurisdictions, including various futures contracts, options, leveraged tokens, and dual-currency investments, clarifying that none of Bybit’s entities in Hong Kong were licensed or registered for regulated activities.
The announcement also specifically pointed out that the website bybit.com is operated by Bybit Fintech Limited located in Seychelles, while bybit.com.hk is operated by the Hong Kong entity Spark Fintech Limited, which does not involve the related encrypted products provided by the former. In summary, the Hong Kong Securities and Futures Commission does not allow local users to use Bybit Global’s derivative products, and after Spark Fintech Limited’s Bybit HK obtains a license, it will be able to legally provide specific encrypted products to Hong Kong users, but currently, it has also withdrawn its license application.
At the time when the Hong Kong Securities and Futures Commission listed Bybit’s offshore entity on the warning list while its Hong Kong entity had applied for relevant licenses, it was indeed the first case.
Source: Hong Kong Securities and Futures Commission
Related Reports
Second round of Notcoin mining》Bybit pledges $NOT with an annualized return of over 790%, TG wallet stores TON for free airdrop
Bybit expands partnership with Ethena: USDe can be used as collateral, earn Sats, participate in new coin mining… Arthur Hayes bullish on $ENA hitting 10 Magnets
Bybit Taiwan, Macau new user limited time offer: pledge USDT, enjoy 666% annualized return