Bybit to discontinue services for Japanese residents, citing regulations

Bybit will begin phasing out services for residents of Japan from 2026, introducing gradual account restrictions as it moves to comply with the country’s regulatory requirements, the cryptocurrency exchange said on Monday.

The exchange said users classified as Japanese residents will be subject to the restrictions on a rolling basis, while those incorrectly flagged have been asked to complete additional identity checks. Bybit is not registered with Japan’s Financial Services Agency, which requires crypto exchanges serving Japanese users to hold local approval.

“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,” the exchange said in an announcement on Monday.

Bybit often ranks as the world’s second-largest crypto exchange by daily trading volume. At the time of writing, it processed about $4.3 billion in trades in 24 hours, according to CoinGecko data.

Related: Japan plans tough new rules for crypto exchanges: What liability reserves actually mean

Bybit halts new user registrations

The announcement follows earlier steps taken by Bybit to limit its exposure to Japan. In October, the exchange said it would pause new user registrations in Japan, citing ongoing discussions with the country’s Financial Services Agency (FSA).

In February, the FSA asked Apple and Google to suspend downloads of five unregistered cryptocurrency exchanges, including Bybit, MEXC Global, LBank Exchange, KuCoin and Bitget.

Japan maintains one of the world’s strictest crypto oversight regimes. In July, Maksym Sakharov, co-founder and CEO of decentralized onchain bank WeFi, told Cointelegraph that Japan’s regulatory bottleneck is pushing innovation out of the country.

Bybit did not respond to Cointelegraph’s request for comment by press time.

Related: Japan’s new crypto tax could wake ‘sleeping giant’ of retail investors

Bybit reenters the UK

Meanwhile, Bybit is reentering the UK market after a two-year pause with a new platform offering spot trading and a peer-to-peer service, operating under a promotions arrangement approved by Archax rather than its own UK registration.