Crypto exchange plans phased restrictions starting 2026 as Japan tightens oversight
Cryptocurrency exchange Bybit has announced plans to discontinue services for residents of Japan, citing the country’s increasinglyy strict regulatory environment. The move will be implemented gradually beginning in 2026, marking a significant shift in Bybit’s regional operations and reflecting Japan’s firm stance on compliance within the digital asset sector.
According to the company, accounts identified as belonging to Japanese residents will face progressive restrictions starting in 2026. Users who believe they have been incorrectly categorized are being asked to complete additional identity verification to clarify their residency status. Bybit stated that further guidance on the remediation process will be shared directly with affected users.
Japan is known for maintaining one of the world’s most rigorous crypto regulatory frameworks, overseen by the Financial Services Agency (FSA). Earlier measures already signaled Bybit’s reduced presence in the country, including the halt of new user registrations for Japan-based customers in late 2024.
Regulatory scrutiny intensified further when authorities requested major app platforms to remove access to several unregistered exchanges, including Bybit. These actions highlight Japan’s focus on investor protection, licensing requirements, and reserve obligations for crypto platforms operating within its borders.
Despite the local withdrawal, Bybit remains a major global player, processing billions of dollars in daily trading volume and maintaining a strong presence in other regions.
While exiting Japan, Bybit is expanding in other markets. The exchange has returned to the UK through a compliant promotional structure and recently secured a virtual asset license in the United Arab Emirates, underscoring its strategy of aligning operations with regional regulatory expectations.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.