Regulatory pressure intensifies: Bybit will cease serving Japanese users starting next year

The second-largest cryptocurrency exchange by trading volume, Bybit, announced that to comply with Japanese financial regulations, it will restrict Japanese residents from using the platform starting next year.

Bybit has not specified which features or services will be affected, but stated that affected users will receive further notifications and explanations as the restrictions are gradually implemented.

Japan has long been known for its strictest crypto regulations worldwide. Any exchange operating in this East Asian economy must pass rigorous scrutiny and register with the Financial Services Agency (FSA), and comply with regulations related to customer protection, asset segregation, and anti-money laundering.

Under this “non-compliance means exit” rule, offshore platforms that fail to meet standards often have no choice but to withdraw from the market.

Additionally, Japan’s regulatory “tightening” continues, with authorities currently planning to require local exchanges to allocate “reserves for responsibility” to build a moat against potential hacking attacks or operational errors, ensuring the safety of user assets.

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Tags: Bybit Exchange, Cryptocurrency, Compliance, Japan Regulation