Bybit to Exit Japanese Market by 2026 Amid Regulations
Bybit will phase out services for Japanese users from 2026 to comply with Japan's tightening crypto regulations.
- Bybit will restrict services for Japanese residents from 2026
- Move aligns with Japan’s strict crypto regulations
- Existing users may face identity checks and phased restrictions
Bybit, one of the leading global cryptocurrency exchanges, has announced that it will begin phasing out its services for residents of Japan starting in 2026. This decision comes as the exchange moves to align with Japan’s strict regulatory framework surrounding crypto assets.
The move is not abrupt. Instead of an immediate service halt, Japanese users will see gradual restrictions roll out over time. This phased approach is designed to allow users enough time to adjust, withdraw funds, or switch platforms without abrupt disruption.
Compliance with Japan’s Financial Rules
Japan has one of the most tightly regulated crypto markets in the world. The Financial Services Agency (FSA) mandates that any exchange operating in the country must be officially registered and comply with local laws, including Know-Your-Customer (KYC) and Anti-Money Laundering (AML) regulations.
Bybit has not secured registration with the FSA. As a result, it is now taking proactive steps to avoid conflict with Japanese regulators, ensuring it doesn’t breach any future enforcement actions.
The exit is part of a broader trend where global crypto platforms are scaling back services in regions with complex regulatory demands. Japan has already taken actions earlier in 2025 by delisting unregistered crypto apps from major platforms, showing its intent to clean up the digital asset ecosystem.
Implications for Users
Japanese residents using Bybit will start facing restrictions on trading and possibly withdrawals starting in 2026. Existing users are advised to monitor their accounts and prepare for upcoming limitations.
Interestingly, the platform is also encouraging users who believe they’ve been misidentified as Japanese residents to complete further identity verification. This might help those who reside outside of Japan but have been tagged incorrectly.
Bybit’s move underscores the growing importance of regulatory alignment for crypto exchanges, especially in markets like Japan where compliance is non-negotiable.
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