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Report claims Bybit becomes the world's second largest, anonymous tip-off: risking opening to Chinese users, four senior executives have resigned recently

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Report claims Bybit becomes the world

The research and analysis firm Kaiko's report indicates that since October 2023, Bybit's market share has surged from 8% to 16%, surpassing Coinbase in March to become the second-largest exchange after Binance. The report also analyzes some possible reasons. The report notes that the trading fees on major centralized exchanges are lowest on OKX, Binance, and Bybit. Bybit's recent increase in market share might be a foundational factor but not the primary reason. The report further analyzes that Bybit's trading volume growth is driven by BTC and ETH, with their market share rising from 17% to 53% since last year. In contrast, Binance has seen more significant growth in trading volumes of altcoins and competition coins. The chart below shows Bybit's significant increase in trading on major cryptocurrencies. In the derivatives market where Bybit already has an advantage, it continues to maintain the second position. The report also suggests that Bybit's growth may benefit from Binance facing regulatory scrutiny, leading to a larger market share for Bybit. Coincidentally, in June of this year, Bybit relaxed its strict stance on China's ban, allowing overseas Chinese users to register and use the platform, which surprised many. Bybit announces cryptocurrency trading services for overseas Chinese users.

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Insider: Opening to Chinese Users is a Gamble, Four Executives Have Resigned Recently

According to insiders, Bybit's decision to open to Chinese users is based on business growth, but it still carries risks under Chinese regulations. Due to China's strict ban on cryptocurrencies, there have been four high-level resignations recently.

The insider revealed that Bybit's core team is currently centered in Dubai with around 300 employees, 300 in Singapore, fewer in Hong Kong, and over 600 in mainland China. Due to Bybit's China policy, there may also be a wave of resignations, and the company is gradually transferring mainland Chinese employees to Kuala Lumpur, Malaysia. He believes that if the Chinese government enforces laws on the mainland, it may affect the related employees; reopening to Chinese users can be considered very bold for Bybit.

Recently, Bybit's CEO stated that reports of layoffs by the media were false, and they are actually actively hiring. According to the insider,

Crypto Industry Players Face New Choices: Moving Towards Regulation or Actively Going Offshore

Currently, regulators in many countries have clearer regulatory standards for VASPs (Virtual Asset Service Providers) such as exchanges and cryptocurrency businesses. Early on, Binance actively sought compliance in various regions but still faced scrutiny from the United States.

In recent years, regulatory standards in the European Union, the United Kingdom, Canada, Hong Kong, Southeast Asia, and other regions have gradually become stricter. Many well-known exchanges operating derivative businesses have chosen to exit the market and become entities that operate as offshore as possible. Bybit has previously exited Canada and the UK, brokerages have stopped cooperation due to KYC, and the recent exit from the Hong Kong market all show the choices made by industry players.

Instead of striving for compliance like well-known brands under strong Western regulations such as Coinbase and Binance, it is better to focus on going offshore and placing the main operations in Dubai, a region with relatively weaker regulations at the crossroads of East and West, serving the masses through an extensive online network. Platforms like Telegram and TON, originating from Russia, have also settled in Dubai. This affluent and regulation-free region has become a new frontier under the pressure of strong Western regulations.

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