- Bybit’s CEO confirms mainland Chinese users can access platform via VPN
- Exchange blocks Chinese IP addresses but accepts overseas Chinese users since June
- Bybit refuses yuan transactions to avoid Chinese capital control issues
- Platform plans Hong Kong license application in early 2025
- Stance contrasts with Coinbase‘s stricter VPN policies
Bybit CEO Ben Zhou publicly acknowledged that mainland Chinese residents can bypass government restrictions to access the cryptocurrency exchange through VPNs, while maintaining a strict no-yuan policy to avoid regulatory conflicts.
Chinese Access Strategy
According to South China Morning Post, Zhou described the risks associated with mainland Chinese traders using VPNs as "acceptable." The exchange implements IP blocks for mainland China but has permitted overseas Chinese users since June 2023.
Regulatory Navigation
Zhou emphasized the exchange’s careful approach to Chinese regulations: "What the Chinese government dislikes the most about crypto is that it can facilitate capital outflow, so we won’t touch this red line." While cryptocurrency trading remains banned in mainland China, Hong Kong maintains a regulated framework for licensed exchanges.
Hong Kong Expansion Plans
The exchange plans to:
- Submit a new license application in Hong Kong by early 2025
- Recruit a dedicated compliance officer
- Use the license primarily as a “confidence booster” rather than a business driver
Coinbase’s Contrasting Position
Coinbase, a major competitor, recently faced criticism for its restrictive VPN policies. A user reported account limitations after using a VPN for a $25,000 USDC transaction.
In response to inquiries, Coinbase told Protos: "VPNs are a valuable tool for privacy, and simply using one won’t result in your account being flagged." However, the exchange confirmed that VPN usage combined with unusual activity triggers additional security reviews.
Market Position
Data from Coingecko positions Bybit as the second-largest cryptocurrency exchange by 24-hour trading volume, surpassing Coinbase while remaining behind market leader Binance.
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