Bybit to Limit Services for Japanese Users Starting in 2026

Bybit Announces Phased Exit from Japan, Restricts New User Registrations

Bybit, one of the world’s leading cryptocurrency exchanges, revealed plans to gradually cease operations for residents of Japan starting in 2026. This move aligns with the platform’s efforts to comply with Japan’s stringent regulatory framework, which has historically posed challenges for international crypto services. The exchange is implementing a phased approach, introducing account restrictions on Japanese users on a rolling basis, while requesting those incorrectly flagged to undergo additional identity verifications.

As of now, Bybit is not registered with Japan’s Financial Services Agency (FSA), an essential requirement for crypto exchanges operating within the country. The exchange’s announcement emphasizes that Japanese residents will be notified about the restrictions through subsequent communications, and that the process will be gradual to ensure smooth transition. This decision follows a series of regulatory-driven actions by Japanese authorities, which continue to tighten controls over digital asset trading.

Bybit’s efforts to limit exposure to the Japanese market are not new. In October, the platform announced it would pause onboarding new users in Japan amidst ongoing discussions with FSA officials. This context is part of broader regulatory crackdowns, notably when in February, the country’s authorities instructed Apple and Google to suspend downloads of five unregistered exchange apps, including Bybit, MEXC Global, LBank Exchange, KuCoin, and Bitget.

Japan maintains some of the most rigorous crypto compliance standards worldwide, which some industry experts argue stifle innovation. Maksym Sakharov, CEO of decentralized banking platform WeFi, commented earlier this year that the regulatory bottleneck is pushing blockchain innovation out of Japan, further emphasizing the importance of clear and balanced regulations for sustainable growth.

Meanwhile, Bybit is actively expanding its presence elsewhere. The exchange recently re-entered the UK market after a two-year hiatus, launching a new platform offering spot trading and peer-to-peer services through an arrangement approved by Archax, rather than through traditional registration. Additionally, last month, Bybit secured a Virtual Asset Platform Operator License from the UAE’s Securities and Commodities Authority, after receiving prior in-principle approval from local regulators.

Bybit’s strategic moves illustrate its ongoing efforts to adapt to diverse regulatory landscapes while maintaining its core business operations worldwide. The evolving regulatory environment in Japan is likely to influence other exchanges’ approach to the Japanese market, as authorities continue to enforce strict compliance measures.

This article was originally published as Bybit to Limit Services for Japanese Users Starting in 2026 on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.