Will China Again Start Crypto Trade?
Bybit, a major cryptocurrency exchange, has made a surprising move by allowing registration and authentication for users in mainland China.
Verification Process Update
According to Colin Wu, a notable Chinese blockchain reporter, Bybit’s verification process now includes users from China. Previously, due to regulatory restrictions, Bybit had barred registration from all Chinese users.
New Authentication Procedures
Users in China can now provide their ID, passport, driver’s license, or resident permit to proceed with Know Your Customer (KYC) protocols on the platform. Wu Blockchain, a social media-based news outlet, reported this development. The Block reached out to Bybit for confirmation.
Excluded Jurisdictions
As of June 5, China was not listed among the excluded jurisdictions for Bybit’s services. However, there is a discrepancy in Bybit’s terms of service, where mainland China is still mentioned as an excluded jurisdiction.
Concerns and Observations
This inconsistency has raised concerns among crypto users and analysts, especially considering the continued use of cryptocurrency in mainland China despite the supposed ban. Some attribute this to the decentralized nature of the technology, while others suspect other factors at play.
High Crypto Volumes in China
Analysts note significant crypto transactions by Chinese users, with Binance recording a $90 billion trading volume in China in a single month last year. This raises doubts about the effectiveness of the crypto ban in China.
Bybit’s services are not available in specific jurisdictions, such as the United States, Mainland China, Singapore, Quebec (Canada), Ontario (Canada), Iran, Sudan, and Syria.
Public Opinion and Legal Status
Feedback from Chinese crypto users suggests skepticism about the extent of China’s crypto ban. While holding or trading crypto may not be explicitly illegal, users are cautious due to the lack of legal protection for their activities.
Formal Statements
Formal notes, including one from a court in Fujian province, suggest that Chinese administrative laws do not entirely prohibit virtual currency transactions. Virtual currencies are recognized as possessing economic value and can be classified as property.
Regulatory Landscape
The Hong Kong Securities and Futures Commission stated in early June that it would not allow services from firms that also cater to customers in mainland China, adding another layer of complexity to the regulatory landscape.
Can Chinese Government Lift Crypto Ban?
The Chinese government hasn’t made a clear decision about allowing crypto activities yet. However, some Chinese courts seeing Bitcoin as a special digital currency brings optimism for a possible ban lift in the future.
