Bybit, a leading cryptocurrency exchange, will stop operations in Japan ahead of the new year. As revealed, the exchange said it will start phasing out services for residents of the Asian country.
According to a statement released by Bybit on Monday, the exchange will introduce gradual account restrictions in 2026. The move as per the exchange is an attempt to comply with Japan’s regulatory standards.Â
While users listed as Japanese residents will experience restrictions on a rolling basis, the exchange stated that those incorrectly classified must complete additional identity verification. In the announcement, Bybit explained that Japanese customers will receive more updates on the remediation process in subsequent communications.
Meanwhile, it is worth mentioning that the exchange is planning to gradually exit the Japanese crypto market because it is not registered with the country’s Financial Services Agency. The agency requires cryptocurrency exchanges operating in the country to hold local approval.
Despite the advancement of the global crypto market, Japan remains one of the high-profile countries with strict regulatory oversight over the digital assets sector. Due to that, key market players and commentators are concerned that the tough approach to the sector is driving innovation out of Japan.
Bybit’s expansion efforts despite facing regulatory issues in Japan
Recall that in February 2025, the Financial Services Agency ordered Apple and Google to suspend downloads of five unregistered cryptocurrency exchanges, including Bybit, MEXC Global, LBank Exchange, KuCoin, and Bitget. Thereafter, Bybit introduced measures to reduce its exposure to Japan.
In October, the virtual assets trading platform disclosed plans to stop registrations of new users from Japan. According to reports, Bybit narrated that it is in a negotiation with the Financial Services Agency to address the license issues.
However, despite plans to leave the Japanese crypto market, Bybit has remained committed to improving relationships with regulators across the globe. Early this month, the exchange returned to the UK market after leaving about two years ago.
The exchange made a return with a new platform that offers spot trading and a peer-to-peer service. Meanwhile, the platform operated under the promotion arrangement approved by Archax instead of its own UK registration.
Likewise, in November, Bybit also gained a Virtual Asset Platform Operator License from the Securities and Commodities Authority of the United Arab Emirates. The approval surfaced eight months after the exchange received an in-principle approval from the UAE regulator.
Read More: