Last updated on January 2nd, 2026 at 06:35 pm
Quick Breakdown
- Bybit will phase out services for Japanese residents from 2026 due to regulatory compliance issues.
- Japan’s FSA continues to clamp down on unregistered crypto exchanges, including app store bans.
- Bybit is expanding globally, with recent regulatory wins in the UK and UAE.
Bybit will begin winding down its services for users in Japan starting in 2026, as the crypto exchange aligns with the country’s strict regulatory framework.
In an announcement on Monday, Bybit said accounts identified as belonging to Japanese residents will face gradual restrictions rolled out over time. Users who believe they were wrongly classified have been asked to complete additional identity verification to correct their status.
Japan’s Financial Services Agency (FSA) requires crypto platforms serving local users to obtain official registration approval. Bybit currently does not hold.
Gradual restrictions planned for Japanese users
Bybit warned Japanese residents to expect phased limitations beginning next year, adding that further guidance will be shared directly with affected users as the remediation process unfolds.
“If you’re a resident of Japan, please note that starting from 2026 your account will be subject to gradual restrictions,”
the exchange said.
Despite the planned exit, Bybit remains one of the largest crypto exchanges globally, frequently ranking second by daily trading volume. At the time of writing, the platform processed roughly $4.3 billion in trades over 24 hours, according to CoinGecko.
Japan’s regulatory crackdown tightens
The move follows earlier steps by Bybit to reduce its exposure to Japan. In October, the exchange paused new user registrations in the country, citing ongoing discussions with regulators.
Pressure intensified in February when Japan’s FSA requested Apple and Google to halt app downloads for five unregistered exchanges: Bybit, MEXC Global, LBank, KuCoin, and Bitget.
Japan is widely regarded as having one of the most authoritarian crypto oversight regimes globally. Industry voices have warned that these rules may be driving innovation elsewhere.
Bybit expands elsewhere despite Japan exit
While stepping back from Japan, Bybit is expanding into other regions. The exchange recently returned to the UK market after a two-year hiatus, launching a new platform that offers spot trading and peer-to-peer services under a promotions arrangement approved by Archax.
Last month, Bybit also secured a Virtual Asset Platform Operator License from the UAE’s Securities and Commodities Authority, eight months after receiving in-principle approval.
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