Bybit to Restrict Services for Japanese Residents Amid Regulatory Pressure

Bybit will begin restricting access to its platform for residents of Japan from 2026, citing the need to comply with the country’s financial regulations.

The cryptocurrency exchange said the move represents a controlled wind-down rather than an abrupt exit. In a notice to users, Bybit linked the decision directly to Japanese regulatory requirements and described it as a proactive compliance measure.

Japan maintains one of the world’s strictest regulatory frameworks for digital asset trading. Exchanges are required to register with the Financial Services Agency (FSA) and meet standards covering customer protection, asset segregation, and anti-money laundering controls. Platforms that fail to comply often face enforcement action or pressure to leave the market.

The FSA has pursued Bybit over unlicensed operations since 2021. Regulators are also considering additional rules that would require domestic crypto platforms to hold liability reserves to cover losses from hacks or operational failures, increasing capital and risk management obligations.

Bybit indicated that restrictions will be introduced gradually and that affected customers will be notified as the timetable becomes clearer. The approach suggests a phased withdrawal aimed at minimizing disruption rather than an immediate shutdown.

The decision follows Bybit’s earlier move in October to suspend onboarding of new users, affecting both Japanese residents and nationals.

The planned Japan exit contrasts with the exchange’s recent return to the UK market. Earlier this month, Bybit confirmed it had resumed operations in the UK under a structure aligned with the Financial Conduct Authority’s regulatory regime, nearly two years after withdrawing amid tighter crypto promotion rules.