Bybit to phase out services for Japan residents from 2026 amid regulation

The company stated that accounts identified as belonging to Japan-based users will face gradual limitations starting next year. Users who believe they were incorrectly flagged were asked to complete additional identity verification. Bybit is not registered with Japan’s Financial Services Agency, which requires crypto exchanges that serve Japanese residents to obtain local approval.

In its notice, Bybit told Japan-based customers they will receive follow-up communications outlining the remediation steps and the timeline for restrictions. The exchange did not detail which products would be limited first or whether withdrawals would be affected during the transition.

Bybit is commonly listed among the largest crypto exchanges by trading volume, a point that often comes up in comparisons like Bitmex vs Bybit. CoinGecko data showed roughly $4.3 billion in 24-hour volume at the time the announcement was published.

The move follows earlier measures aimed at reducing the platform’s exposure to Japan. In October 2025, Bybit paused new user registrations for Japan-based customers, citing ongoing engagement with the Financial Services Agency. In February 2025, Japan’s regulator asked Apple and Google to suspend downloads of several unregistered crypto exchange apps, including Bybit, MEXC Global, LBank, KuCoin and Bitget.

Separately, Bybit has pursued licensing and re-entry efforts in other jurisdictions. In November 2025, the exchange said it would return to the UK with a new platform offering spot trading and peer-to-peer services under a promotions arrangement approved by Archax. Bybit also reported securing a Virtual Asset Platform Operator license from the United Arab Emirates Securities and Commodities Authority in late 2025, following an earlier in-principle approval.

As GNcrypto reported on 10 December 2025, Bybit published a “World Crypto Rankings” study compiled by DL Research that placed Singapore first globally for crypto adoption, followed by the United States and Lithuania, using factors such as user penetration, institutional readiness, regulatory clarity and on- and off-ramp support. The report highlighted smaller European hubs, including Lithuania for licensing and fiat connectivity, and described stablecoins as a key adoption driver across regions, while noting that other indices, including Chainalysis and TRM Labs, reach different country rankings based on methodology.