Bybit confirms phased account restrictions for Japanese users from 2026, aligning operations with Japan’s strict crypto regulatory framework.
Bybit has announced a gradual tightening of services for Japanese residents, starting in 2026. The move comes in the face of increasing regulatory pressure. Consequently, the exchange is aiming to comply with the stringent rules of digital assets in Japan. Officials confirmed the plan on Monday, but emphasized compliance and orderly implementation.
Bybit Moves to Align With Japan’s Financial Services Agency Rules
Japan has one of the most stringent oversight regimes on crypto in the world via the Financial Services Agency. Therefore, exchanges need to register at the local level. Such approval is currently missing from Bybit. As a result, the platform has been warned by regulators in previous years.
Moreover, Bybit said Japanese users will be restricted on a rolling basis. This approach provides for phased implementation. Meanwhile, users who were incorrectly classified as residents can submit additional identity checks. Hence, the company wants to be accurate in enforcement.
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This transition was signaled by the steps taken earlier. On October 31st 2025, Bybit suspended the registration of new accounts from Japan. There was an impact on both individual and corporate signups. As a result, the growth from the Japanese market was essentially stopped before restrictions began.
The exchange made clear important compliance deadlines. In particular, January 22, 2026, is a critical cutoff. Users failing Identity Verification Level 2 up until that point will be considered Japanese residents. Therefore, restrictions will necessarily apply afterwards.
For the most part, existing Japanese users were allowed to use most services. However, the most recent notice confirms the change. Gradual limits will begin in 2026. To this end, operational continuity no longer will be guaranteed for impacted accounts.
Japan’s Crypto Clampdown Shapes Bybit’s Global Strategy
Japan’s system of regulation has become stricter since major failures of exchanges. Therefore, consumer protection and licensing are stressed upon by authorities.
Bybit called its decision proactive. Rather than confront enforcement, it wants cooperation. The exchange confirmed discussions with regulators still underway. Hence, the future reentry through formal registration is possible. A number of competitors have already ventured down similar routes.
Meanwhile, users who argue with residency classification can take action. The access may be continued by completing Identity Verification Level 2. Therefore, Bybit urges verification updates to be done immediately. Communication will take place through direct official channels of exchange.
The announcement is in contrast to Bybit’s expansion elsewhere. Notably, the exchange is coming back on the United Kingdom market. This follows a two-year pause. The new UK platform will provide spot trading and peer-to-peer services.
However, there are structural differences in operations there. Bybit will be relying on a promotions arrangement approved by Archax. It will not have its own UK registration at first. Therefore, regulatory navigation is still at the heart of its strategy.
Overall, Bybit’s move to Japan brings regulatory divergence into light. Strict oversight is more expensive in terms of compliance costs. Consequently, exchanges will have to adapt market by market. Japan’s strategy is focused on control, whereas in other hubs, there is conditional access.
Source: https://www.livebitcoinnews.com/bybit-announces-gradual-account-restrictions-for-japanese-users/
