In a surprising turn of events, Bybit has allegedly opened its doors for Chinese users. According to WuBlockchain, the third-biggest foreign exchange Bybit unexpectedly allowed users in China to register and authenticate.
The Bybit exchange has long forbade any Chinese users from registering or using the service. Due to the strict laws of the country, the management group has exercised extreme caution.
China’s Crypto Restrictions Not A Problem For ByBit?
At present China has very strict laws regarding crypto exchanges and platforms in the country. Most Chinese investors take a diverging approach to bypass the laws and trade crypto via Hong Kong.
Hong Kong provides a gateway to the wealth found in traditional marketplaces on the Chinese mainland. Beijing has prohibited the trading of digital assets, so mainland investors do not have easy access to Hong Kong’s exchange-traded funds (ETFs) or cryptocurrency exchanges. It is believed that Chinese nationals are avoiding the ban on cryptocurrencies by moving their money overseas or by seeking out other investments in the face of falling real estate prices
Because Hong Kong upholds the principle of “one country, two systems” while being a part of China, it is permitted to maintain its Bitcoin legislation. Even though mainland China has severely restricted any private party coin issuance since 2021, Hong Kong still permits cryptocurrency activities.
According to Chainalysis, the OTC market made up a sizeable portion of the $64 billion in transactions that took place in Hong Kong between July 2022 and June 2023.
However, Bybit had already withdrawn its application for a license in Hong Kong previously. At present, no organization is permitted to establish a business in mainland China by Hong Kong. This implies that Bybit might give an opportunity for mainland Chinese people to trade crypto without using the shield of Hong Kong.
What Cryptos Are Popular Among Chinese Investors?
Retail traders have recently shown a strong appetite for initiatives with a Chinese connection in the country. The top five actively trading Chinese cryptocurrencies include Nexus (NEO), Conflux (CFX), Filecoin (FIL), Alchemy Pay (ACH), and VeChain (VET). The fact that these coins are all connected to Chinese projects is the only thing they have in common.
Bybit offers support for several smaller but nonetheless well-known cryptocurrencies in addition to the top ten by market capitalization. Bybit facilitates cryptocurrency trading through spot and derivative products. It also provides traders with a variety of synthetic products through its derivatives platform that allow them to participate in the cryptocurrency market.
The derivatives platform allows traders to purchase long or sell short. The move could now give a platform for Chinese investors to invest in a broad spectrum of cryptocurrencies available in the market.
