Bybit to End Services for Japanese Residents by January 2026

• Bybit’s Japan exit sets a 2026 KYC deadline, pushing users to verify or relocate assets.
• Phased limits show rising FSA pressure, reshaping access for overseas crypto platforms.
• Exit could be temporary, echoing Binance’s path to a licensed return after alignment.

Bybit has confirmed plans to end services for users residing in Japan, marking a decisive shift in its regional strategy. The exchange said account restrictions will begin rolling out in 2026, following earlier limits on registrations. Consequently, Japanese residents using the platform now face a clear deadline to complete compliance steps or prepare alternatives. 

The decision reflects mounting regulatory pressure and signals bigger changes for overseas crypto platforms operating in Japan. Moreover, the move highlights how enforcement actions now shape access to global trading venues.

The company stated that users identified as Japanese residents must complete Level 2 identity verification by January 22, 2026. This process requires proof of address to confirm residency status. Hence, users who fail to complete verification will face progressive account limitations starting in 2026. 

Additionally, users who believe the platform misclassified their residence may update records before the deadline. Bybit said compliant users may retain access to its global website. However, the company plans to announce separate guidance for confirmed Japanese residents later.

KYC Deadline Sets Clear Path for Users

Bybit already halted new registrations from Japan in late October, signaling an earlier phase of withdrawal. Moreover, the platform removed its application from local app stores earlier this year. These actions formed part of a gradual retreat rather than a sudden shutdown. 

Consequently, existing users now must decide whether to verify, relocate assets, or exit entirely. Besides, the deadline offers a limited window for users to plan orderly transitions without disruption.

The exchange said restrictions will increase gradually, rather than arrive all at once. Hence, users may initially face limits on trading or deposits before further controls apply. Additionally, the company urged users to review their account status early to avoid complications. This phased approach aims to reduce sudden market impacts while meeting regulatory demands.

Japan Tightens Oversight on Overseas Exchanges

Japan’s Financial Services Agency has intensified scrutiny of unregistered crypto operators in recent years. Significantly, amendments to the Financial Instruments and Exchange Act in 2024 strengthened oversight of derivatives trading. 

The law also increased penalties for platforms operating without approval. Consequently, overseas exchanges now face limited flexibility when serving Japanese residents.

Bybit has received multiple warnings from regulators since 2021. Moreover, enforcement actions required technology firms to remove their application from local stores. 

Other global exchanges have followed similar withdrawal paths. Hence, Japanese users increasingly must rely on domestically registered platforms.

Market Impact and Possible Return Path

Bybit ranks as the world’s second-largest exchange by trading volume and serves more than 70 million users globally. Consequently, its exit may affect liquidity and user behavior among Japanese traders. However, some market observers view the withdrawal as a strategic pause rather than a permanent departure. 

Binance followed a similar path before launching a licensed Japanese exchange in 2023. Additionally, Bybit may pursue a comparable route if regulatory alignment becomes feasible.

Related: Bybit Follows Binance’s Lead, Enters Talks to Acquire Korbit in South Korea