Bybit CEO claims Chinese users can bypass restrictions with VPN

Ben Zhou, Bybit’s CEO, said residents of mainland China can access the crypto exchange with a VPN and bypass restrictions from China’s government while stressing that it will not accept the Yuan national currency.

The company blocks IP addresses from mainland China but began allowing overseas Chinese users to sign up for the exchange back in June. As reported by the South China Morning Post, Zhou stated that Bybit wouldn’t trade yuan but noted that mainland residents can use a VPN. He claimed the risks of allowing mainland Chinese residents to trade on their platform were “acceptable.”

Zhou additionally stated, “What the Chinese government dislikes the most about crypto is that it can facilitate capital outflow, so we won’t touch this red line.” China currently bans cryptocurrency trading, but Hong Kong allows it through licensed crypto exchanges.

Zhou also claimed that Bybit is planning to reapply for that Hong Kong license at the start of 2025 and intends to find a new compliance officer. This, he said, wouldn’t do much in terms of bringing in business from Hong Kong but rather act as a “confidence booster.”

Bybit’s VPN stance contrasts Coinbase

Coinbase recently received social media backlash for its tougher stance on VPNs after a user claimed that using a VPN and sending $25,000 in USDC locked their account. 

Coinbase’s product designer said, “Attackers always use VPNs, so our risk models take that as a negative sign even if you’re legitimately using your own account.”

When asked to comment on their VPN stance, Coinbase told Protos, “VPNs are a valuable tool for privacy, and simply using one won’t result in your account being flagged.” 

Read more: Polymarket bans French users but still can’t stop VPNs

However, it conceded VPNs can “trigger additional security reviews” when combined with “unusual activity—like a login from a new, unrecognized device.”

“This is a common practice across financial institutions to help prevent account takeover (ATO) attacks,” Coinbase said, and it recommended that users utilize a Passkey or a Physical Security Key for 2-factor authentication instead.

Bybit is currently the second largest crypto exchange in terms of 24-hour volume, according to Coingecko. Bybit is beaten only by Binance and remains larger than Coinbase.

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.