Cryptocurrency exchange Bybit will begin discontinuing services for Japanese residents starting in 2026 as it moves to align with the country’s regulatory framework. The company confirmed on Monday that accounts identified as belonging to users in Japan will face gradual restrictions over time, marking a significant shift in Bybit Japan operations.
In a statement shared with users, the exchange said the restrictions will be applied on a rolling basis. Customers who believe they have been incorrectly classified as Japanese residents have been asked to complete additional identity verification to avoid disruption. Bybit is not registered with Japan’s Financial Services Agency, which requires crypto exchanges serving local users to obtain approval and meet strict compliance standards.
“If you’re a resident of Japan, please note that starting from 2026 your account will be subject to gradual restrictions. You’ll receive additional updates on the remediation process in subsequent communications,” Bybit said in its announcement.
Bybit regularly ranks among the largest cryptocurrency exchanges globally by trading volume. Data from CoinGecko shows the platform processed around $4.3 billion in trades over a 24 hour period at the time of reporting, highlighting the scale of the impact for affected users in the region.
Regulatory pressure shapes Bybit Japan decision
The planned phase out follows earlier steps taken by the exchange to limit its exposure to the Japanese market. In October, Bybit said it would halt new user registrations in Japan while it continued discussions with the Financial Services Agency. That move came as regulators intensified scrutiny of overseas crypto platforms operating without local licenses.
In February, the FSA formally requested Apple and Google to suspend app downloads for five unregistered exchanges, including Bybit, MEXC Global, LBank Exchange, KuCoin and Bitget. The request underscored Japan’s strict stance on consumer protection and regulatory oversight in the digital asset sector.
Japan is widely regarded as one of the most tightly regulated crypto markets. Industry leaders have warned that the compliance burden is influencing where companies choose to operate. In July, WeFi co-founder and chief executive Maksym Sakharov told Cointelegraph that regulatory bottlenecks were pushing innovation away from Japan, as firms seek jurisdictions with clearer or more flexible rules.
Bybit did not respond to a request for additional comment by press time.
Global expansion continues outside Japan
While Bybit Japan services are being wound down, the exchange is expanding in other regions. The company is reentering the United Kingdom after a two year pause, launching a new platform that supports spot trading and peer to peer services. The offering operates under a promotions arrangement approved by Archax rather than through direct UK registration.
The exchange has also strengthened its presence in the Middle East. Last month, Bybit secured a Virtual Asset Platform Operator License from the United Arab Emirates Securities and Commodities Authority. The approval followed an in principle clearance granted eight months earlier and positions the company to operate more broadly in the region.
The contrasting developments highlight how regulatory clarity continues to shape the global crypto landscape. For users in Japan, the coming years will involve preparing for account restrictions and seeking compliant alternatives, while Bybit Japan gradually exits the market.
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