This article was amended on June 10 to include commentary from Bybit after publication.
- China banned crypto trading and mining in 2021.
- Bybit has reportedly opened up account registration for Mainland Chinese users.
- Observers expect China will eventually U-turn on its anti-crypto policy.
China’s anti-crypto stance culminated in a sweeping ban on crypto trading and proof-of-work mining activities in 2021. Authorities justified the ban on the grounds of curtailing financial crimes and economic instability. However, holding cryptocurrencies remained legal for individuals under the restrictions.
The knock-on effects saw a 56% drawdown in the Bitcoin price over 10 weeks, while miners staged a mass exodus to more crypto-friendly jurisdictions. Major exchanges rapidly cut ties with Chinese users in response to the move. But now, three years later, speculation is mounting that China may reverse course, particularly as Bybit has re-opened new user registration to Chinese customers.
Bybit Reportedly Opens Mainland Registrations
Crypto reporter Wu Blockchain noted that Bybit has seemingly opened up account registration for users located in mainland China, adding to speculation that Chinese authorities may be reversing course on the nation’s 2021 trading and mining ban.
https://x.com/WuBlockchain/status/1798368770899275974
While there has been no official confirmation from Beijing of a policy U-turn.
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Wu Blockchain also claimed that Bybit’s move to open Chinese registrations has “caused panic among internal employees” at the exchange. An archived version of Bybit’s “Service Restricted” page previously listed mainland China and Hong Kong among the jurisdictions the platform does not serve.
However, the current version of that same page no longer shows mainland China as a restricted area, while Hong Kong remains listed. DailyCoin reached out to Bybit requesting clarification on whether the platform is now available to Chinese users. A Bybit spokesperson told DailyCoin that the company had re-opened registration for overseas Chinese nationals.
These developments have reignited broader discussions around the possibility of China lifting its crypto trading and mining ban.
Is China Pro-Crypto Now?
Talk of China potentially lifting its trading and mining ban has been growing for the longest time, but Tether co-founder Brock Pierce recently reignited speculation by telling the South China Morning Post that he believes it’s “inevitable” China will reverse course, adding “The question is not so much if, it’s a matter of when.”
BitMEX co-founder Arthur Hayes holds similar views. In a 2022 blog post, Hayes argued that Hong Kong’s relatively receptive crypto stance could be a “harbinger for a reboot of China’s crypto dominance.”
On the Flipside
- Hong Kong‘s SFC added Bybit to its list of suspicious virtual asset trading platforms over “conducting unlicensed activities” in March.
- Bybit withdrew its Hong Kong crypto exchange license application on May 30 without explanation.
Why This Matters
Bybit has opened registration for overseas Chinese nationals in response to growing demand, this alone should not be taken as confirmation that Beijing is abandoning its staunch anti-crypto stance.
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