Bybit to Gradually Restrict Services for Japanese Residents Starting 2026

TLDR:

• Bybit suspends new Japanese account registrations since October 2025 to comply with FSA rules.
• Identity Verification Level 2 must be completed by Jan 22, 2026, to avoid restrictions.
• Existing Japanese users will face gradual account limitations starting in 2026.
• Bybit expands globally with UAE licensing and UK platform reentry under Archax approval.

Bybit has announced it will discontinue services for Japanese residents to comply with the Financial Services Agency’s regulatory framework. 

Existing accounts will face gradual restrictions beginning in January 2026. The exchange clarified that users failing to complete Identity Verification Level 2 by January 22, 2026, will be classified as Japanese residents. 

This step marks the end of offshore exchange operations in Japan for platforms without local registration approval.

Regulatory Compliance and User Restrictions

Bybit is not registered with Japan’s Financial Services Agency, which requires exchanges serving Japanese users to hold local approval. The platform has received previous warnings from regulators regarding its operations. 

As part of its compliance measures, Bybit suspended new account registrations from Japan on October 31, 2025. Both individual and corporate signups were affected, effectively halting growth from the Japanese market before formal restrictions were introduced.

The exchange clarified that users identified as Japanese residents will face rolling restrictions starting in 2026. Accounts failing to meet identity verification requirements will have limited access. 

Bybit urged users to complete Identity Verification Level 2 (POA/KYC2) to prevent misclassification. The platform emphasized that operational continuity cannot be guaranteed for accounts classified as Japanese residents after the cutoff date.

Users who believe their classification is incorrect have been asked to update their verification details. Bybit provided clear instructions for completing the verification process. 

Those who comply before the January 22, 2026 deadline will maintain access to the platform. The exchange reiterated that account restrictions will be implemented gradually, with ongoing updates communicated directly to affected users.

Japanese residents have largely retained access to existing services until the upcoming restrictions. Bybit’s announcement signals a structured transition to regulatory compliance. 

The company has maintained proactive communication with users to minimize disruptions. This process aligns with Japan’s strict oversight of digital asset exchanges.

Bybit’s Global Operations and Licensing Updates

While exiting the Japanese market, Bybit continues to expand its global presence. The exchange recently reentered the United Kingdom with a new platform offering spot trading and a peer-to-peer service. 

Operations in the UK are conducted under an approved promotions arrangement via Archax. This approach allows Bybit to operate legally while seeking full local authorization.

In addition, Bybit obtained a Virtual Asset Platform Operator License from the Securities and Commodities Authority of the United Arab Emirates. 

The license followed in-principle approval granted eight months earlier, enabling formal operations in the UAE. These developments demonstrate Bybit’s focus on compliant market entry across multiple jurisdictions.

Bybit ranks among the largest cryptocurrency exchanges globally, processing approximately $4.3 billion in trades daily, according to CoinGecko. 

The company’s approach to regulation combines proactive compliance with continued service innovation. Updates to its operations in Japan reflect this broader global strategy.

Bybit’s phased exit from Japan is part of its ongoing efforts to align with regulatory standards. Users across other regions remain unaffected by these restrictions. 

The exchange continues to maintain services for non-Japanese residents without operational changes. These steps illustrate Bybit’s commitment to maintaining legal and regulated operations worldwide.

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