Bybit plans to phase out its services for residents in Japan beginning in 2026 due to regulatory obligations. The company will implement gradual restrictions on accounts for users identified as residing in Japan, while users misclassified will need to undergo further identity verification. Currently, Bybit lacks registration with the Financial Services Agency (FSA) in Japan, which mandates that crypto exchanges must obtain local authorization to operate.
“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 announced.
Bybit is one of the largest cryptocurrency exchanges globally, with a daily trading volume of around $4.3 billion, according to CoinGecko data.
Top five crypto exchanges by volume. Source: CoinGecko
Related: Japan plans tough new rules for crypto exchanges: What liability reserves actually mean
Bybit Discontinues New User Registrations
This decision follows Bybit’s earlier move to restrict its operations in Japan. In October, the exchange announced that it would suspend new user registrations in the country while engaging in discussions with the FSA.
In February, the FSA requested that Apple and Google halt the download of five unregistered cryptocurrency exchanges, including Bybit, MEXC Global, LBank Exchange, KuCoin, and Bitget. Japan enforces stringent regulations on crypto operations.
Maksym Sakharov, co-founder and CEO of decentralized bank WeFi, commented that Japan’s strict regulatory environment is hindering innovation within the country.
Bybit has not responded to requests for comment as of the time of writing.
Related: Japan’s new crypto tax could wake ‘sleeping giant’ of retail investors
Bybit’s Return to the UK Market
In other news, Bybit is set to reenter the UK market after a two-year hiatus, introducing a new platform that offers spot trading and peer-to-peer services, under a promotional agreement with Archax instead of its own UK registration. Recently, Bybit also secured a Virtual Asset Platform Operator License from the UAE’s Securities and Commodities Authority, following earlier approval from local regulators.
