Bybit Plans Gradual Exit From Japan Amid Regulatory Pressure
The cryptocurrency exchange Bybit is preparing to withdraw from the Japanese market, announcing plans to gradually wind down services for residents of Japan starting in 2026.
The decision follows earlier steps to stop new registrations in the country and reflects the exchange’s efforts to navigate Japan’s strict regulatory environment.
Key takeaways
- Bybit will begin phasing out services for Japan-based users from 2026.
- Account restrictions will be introduced gradually rather than through an immediate shutdown.
- The move is linked to Japan’s licensing requirements for crypto exchanges.
- Bybit continues to expand in other regulated markets despite the Japan exit.
According to Bybit, accounts identified as belonging to Japanese residents will face phased restrictions over time. The exchange said users will receive further updates as the process progresses, while those who believe they have been incorrectly classified have been asked to complete additional identity verification checks.
Japan requires cryptocurrency exchanges serving local users to register with the Financial Services Agency. Bybit is not registered with the agency, which underpins its decision to scale back operations in the country rather than pursue local authorization.
Despite the planned exit, Bybit remains one of the most active trading platforms globally. It often ranks among the top exchanges by daily trading volume, processing around $4.3 billion in trades over a 24-hour period.
Regulatory Pressure Builds in Japan
The announcement follows a series of actions signaling Bybit’s reduced presence in Japan. In October, the exchange halted new user registrations in the country, citing ongoing discussions with regulators. Earlier this year, Japanese authorities also requested that major app stores suspend downloads of several unregistered crypto exchanges, including Bybit.
Japan is known for maintaining one of the world’s strictest crypto regulatory regimes. While the framework emphasizes investor protection, industry participants have argued that the high compliance burden can discourage innovation and push global platforms to focus on more accommodating jurisdictions.
Bybit did not provide additional comment beyond its public statement. However, the company’s broader strategy suggests it is selectively focusing on regions where regulatory clarity allows for sustainable operations.
Outside Japan, Bybit has been expanding its regulated footprint. The exchange recently reentered the United Kingdom with a new platform offering spot trading and peer-to-peer services under a promotions arrangement approved by Archax. It has also secured a Virtual Asset Platform Operator license from the Securities and Commodities Authority, strengthening its presence in the Middle East.
Overall, Bybit’s planned withdrawal from Japan highlights the challenges global crypto exchanges face in navigating fragmented regulatory landscapes. While the Japanese market is being phased out, the exchange continues to pursue growth in regions where regulatory pathways are clearer and more accessible.
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Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
