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.

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Coinbase is facing criticism on social media after it was discovered that the US-based exchange is restricting the accounts of users who access the platform via a VPN.

Yesterday, EthHub co-founder Eric Conner complained that Coinbase locked his account after he tried to send $25,000 in USDC. When Conner said it was apparent that his use of a VPN was behind the restriction, many users began to complain about the same VPN-related issues with Coinbase. 

Today, Coinbase product designer Scott Shapiro said, “PSA: Don’t use a VPN to access Coinbase.” 

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

Users on X, however, didn’t react well to the exchange’s VPN stance. One user said, “It’s our privacy right to use VPNs. If you’re telling us to not use VPN to access Coinbase, the choice is to just not use Coinbase.” 

Read more: Coinbase to leave Turkey after ending USDC yields in EU

Another posted, “This just shows your incompetence. Users should not have to disable their VPN to use your exchange. Period.” Kraken’s chief security officer said, “You are making some of your users choose between financial freedom and physical safety.” 

Debanking dominated conversation on X this week with some comparing it to Coinbase’s VPN stance. The company’s CEO Brian Armstrong offered his take on the subject last Sunday, claiming that “anti-money laundering regulations have been a policy failure,” that costs roughly $213 billion each year and harms consumers. 

Conner posted, “Wasn’t @brian_armstrong just talking about debanking???” after his account was frozen. 

Read more: CHART: How bitcoin and crypto are taxed across the G7

However, not everybody took issue with Coinbase’s approach to the account freeze. Blockworks co-founder Jason Yanowitz suggested that the company is just trying to protect users from hackers, while former Coinbase employee @LukeYoungblood agreed, stressing that Coinbase isn’t debanking him. 

In response to Yanowitz, Conner called the approach “a lazy implementation,” saying, “There are plenty of better ways to handle this than just nuking my account.”

After regaining access to his account, Conner noted, “I’m lucky with my reach. Others, not so much…”

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Anyone in Myanmar caught using crypto or virtual private networks (VPN) could face up to three years in jail and hefty fines if the country’s military government passes a new cybersecurity law, reports The Register.

The bill was floated to government ministers on January 13. It intends to criminalize methods used by supporters of the country’s pro-democracy political class to organize, communicate, and support themselves.

Under the new rules:

• Using a VPN without a military license risks one to three years in jail and a 5 million Kyat ($2,800) fine.
• Transacting via crypto faces six months to one year in jail and a similar fine.
• Internet service providers must share citizen internet records if requested by authorities.

Following last year’s military coup, pro-democracy citizens have leveraged VPNs to evade surveillance and military-imposed internet censorship, which still blocks access to social media sites.

Myanmar’s government-in-exile, the National Unity Government (NUG), last month acknowledged stablecoin Tether as a means to transact outside of the junta-controled fiat currency, the Kyat.

The NUG is currently fundraising to finance its ambitions to regain control amid 11 months of deadly protests.

Myanmar’s second attempt at a crypto crackdown

Overall, the proposed rules represent revised efforts to outlaw parts of the internet. Myanmar’s central bank has prevented the country’s banks from servicing crypto since May 2020.

But this year’s version of the junta’s cybersecurity law places more stringent controls on internet activity.

One Myanmarese Reddit poster explained locals use VPNs to access banned social media (Facebook and Twitter) to “spread news about what’s happening in Myanmar,” particularly atrocities perpetuated by the reigning military government.

“We are also watching ads with [USA-based] VPNs to generate more money on revolution websites, where we can watch ads and donate the revenue directly to rebels who are fighting the dictatorship,” they said, adding that mobile data prices have surged “more than five times” since the coup as a result.

Read more: [Myanmar’s parallel government wants revolution backed by Tether crypto]

Last February’s attempt to pass a similar bill was met with objections from the Myanmar Federation of Chambers of Commerce and Industry.

Unconfirmed rumors of military council members already cracking down on those breaking the unratified laws are now spreading across the Southeast Asian nation, according to BBC Myanmar.

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The post Fearing revolution, Myanmar’s military gov’t wants to ban crypto and VPNs appeared first on Protos.