Advertise
Bybit will begin exiting Japan in 2026 as regulators tighten control over offshore crypto exchanges.
The move follows growing pressure from Japan’s FSA.
Bybit is expanding in regions with clearer crypto regulations like the UK and UAE.
Bybit is preparing to leave Japan.
One of the world’s largest crypto exchanges has confirmed it will begin phasing out services for Japanese residents starting in 2026, as regulatory pressure in the country continues to tighten.
The move follows months of escalating scrutiny from Japan’s Financial Services Agency (FSA), which has taken a hard line against unregistered offshore platforms.
Bybit said the exit will happen gradually. Accounts identified as belonging to Japanese residents will face rolling restrictions, giving users time to manage positions, withdraw funds, and transition to other platforms.
Users who believe they were wrongly flagged have been asked to complete additional identity checks, with further instructions expected in the coming months.
Why Bybit Is Stepping Back From Japan
Japan requires crypto exchanges serving local users to be fully registered with the FSA, a standard Bybit has not met. While the exchange continued operating for years, enforcement intensified in late 2024.
In October, Bybit paused new user registrations in Japan while discussions with regulators were ongoing. Back in February, the FSA had asked Apple and Google to remove several unregistered crypto exchange apps from their stores – including Bybit, KuCoin, Bitget, MEXC Global, and LBank.
Japan’s regulators have made it clear they are unwilling to allow offshore exchanges to operate without full compliance.
A Tougher Regulatory Climate Is Taking Shape
Japan is also moving toward stricter oversight across the board. Authorities are advancing plans that would require exchanges to hold liability reserves, similar to traditional securities firms, to protect users from hacks or system failures. Lawmakers are also exploring broader crypto reforms, including potential asset reclassification and stronger consumer protections.
Industry executives have warned that these rules could push innovation offshore, but Japanese regulators remain firm on prioritizing security and oversight.
What Next for Bybit?
While exiting Japan, Bybit is expanding in other regions. The exchange recently re-entered the UK through a promotions arrangement with Archax and secured a Virtual Asset Platform Operator license in the UAE.
As 2026 approaches, Japan’s tough stance may reshape not just who operates there, but how global crypto platforms plan their next moves.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
Bybit is exiting Japan due to strict FSA rules requiring full registration. Regulators increased enforcement against unregistered offshore exchanges.
Bybit will begin phasing out services for Japanese residents in 2026, with gradual restrictions to allow time for withdrawals and account transitions.
Yes. Japan is tightening crypto oversight, adding consumer protections and compliance rules to reduce risks from hacks and system failures.
A return is possible only if Bybit completes full registration with Japan’s Financial Services Agency and meets local operational standards. There is no public timeline or indication that such an application is underway.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Yes 
No 
