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Spot trading is a transaction that includes the transfer of securities, but with a bias towards one side of the trade. This means the parties concerned might not realize that the trade is being executed until the transfer is complete.
Spot trading accounts for around three percent of all China's open market transactions, but it is the largest segment by value and number of trades.
Crytpocurrency spot trading has grown rapidly in the past year, with China accounting for the largest share of all crypto transactions globally, according to Bloomberg.
ByteDance's move follows a tightening of oversight in the sector over the past few months.
Spot trading benefits from lighter regulation.
The regulations have effectively killed "initial coin offerings" or ICOs – the most popular method of funding start-ups. The authorities are moving towards capping the total amount of funds available for crypto start-ups to issue new tokens, and have tightened capital controls.
Huge numbers of Chinese investors were attracted by the huge returns that the initial coin offerings promised, and in a significant proportion of cases the coins have little use beyond speculation.