Japan regulations prompt Bybit to phase out local access from 2026
Bybit has announced that it will begin phasing out its services for Japanese residents starting in 2026. According to the exchange, this step aims to ensure full compliance with Japan’s regulatory requirements. Users who might be incorrectly categorized will receive notifications and may be asked to complete additional identity verification to confirm their residency status. Bybit emphasized that the transition will be gradual so customers can adjust smoothly.
This development comes after the platform’s earlier decision in October 2025 to stop accepting new registrations from Japan while it reviewed its compliance processes. The exchange stated that these measures are part of a broader effort to strengthen operational transparency and align with local laws. Existing users are encouraged to stay updated on upcoming changes and follow any instructions provided by the platform.
Why Bybit to discontinue services for Japanese residents
Japan requires any platform serving domestic customers to register as a Crypto-Asset Exchange Service Provider with the Financial Services Agency (FSA). Bybit is not listed among registered entities, and the exchange says it is introducing “gradual restrictions” to comply. Financial Services Agency+2Financial Services Agency+2
What “Bybit to discontinue services for Japanese residents” means for users
Users classified as Japanese residents will face rolling limitations from 2026. Those who believe they have been flagged incorrectly are instructed to complete additional KYC checks. Existing accounts otherwise remain active until restrictions apply; new sign-ups have already been paused since Oct. 31, 2025.
Market context and regulatory backdrop
Japan has tightened oversight of unregistered overseas exchanges. On Feb. 7, 2025, the FSA asked Apple and Google to block downloads of five exchange apps, including Bybit, KuCoin, Bitget, MEXC and LBank. Ongoing policy discussions could further reshape market access.
Bybit’s scale
Bybit frequently ranks among the largest centralized exchanges by trading volume; CoinGecko data shows the exchange’s current 24-hour spot volume around $4.3–$4.4 billion today, with broader research placing it second by market share in 2024.
Compliance and consumer protection
Japan’s rules aim to ensure custody standards, disclosures and Travel-Rule compliance. Exchanges must register, maintain internal controls and meet reporting obligations before serving domestic users.
Analysis
If restrictions begin in 2026 as stated, Japanese users may gradually migrate to FSA-registered platforms. Liquidity fragmentation could affect traders who relied on Bybit’s derivatives markets, but the impact will depend on how quickly local providers expand product breadth.
Conclusion
Bybit’s planned 2026 phase-out for Japanese residents marks a continuation of changes that began with its October 2025 halt on new user onboarding. The exchange is moving toward stricter regulatory alignment, making it important for users to confirm their residency status and stay updated on official notifications regarding eligibility.
As phased restrictions approach, affected traders are advised to prepare in advance. This includes gradually closing open positions, securing funds, and exploring FSA-registered platforms that meet Japan’s regulatory standards. Early planning will help ensure a smooth shift and reduce any disruption when Bybit’s service limitations take full effect.
FAQs
Q : When will restrictions start?
A : Gradual restrictions for accounts classified as Japanese residents will begin in 2026, with updates sent directly to users.
Q : Did Bybit already stop onboarding in Japan?
A : Yes. New user registrations were paused on Oct. 31, 2025. Existing users can continue for now until phased restrictions apply.
Q : Is Bybit registered with Japan’s FSA?
A : No. Bybit does not appear on the FSA’s list of registered crypto-asset exchange service providers.
Q : Why is Bybit to discontinue services for Japanese residents?
A : To align with Japan’s registration requirements and broader consumer-protection rules for crypto platforms.
Q : What should I do if I’m misclassified as a Japanese resident?
A : Complete the extra identity checks requested by Bybit and contact support to update your status.
Q : How big is Bybit in trading volume?
A : Bybit is among the largest exchanges; today its spot 24-hour volume is around $4.3–$4.4bn.
Q : What else has Japan’s FSA done recently?
A : In Feb. 2025, the FSA asked Apple and Google to block unregistered exchange apps, reflecting stricter oversight.
Facts
Event
Bybit announces phased discontinuation of services for Japanese residentsDate/Time
2025-12-23T00:00:00+05:00Entities
Bybit; Japan Financial Services Agency (FSA); Apple; Google; CoinGeckoFigures
Bybit spot 24-hour volume ≈ USD 4.3–4.4bn (today); Bybit #2 exchange by 2024 market share (9.3%)Quotes
“Starting from 2026 your account will be subject to gradual restrictions.” Bybit announcement (Dec. 2025)Sources
Bybit announcement important notice for Japanese residents; FSA registration list (site); CoinGecko exchange pages; The Block/CryptoSlate on app store requests. CryptoSlate+5announcements.bybit.com+5Financial Services Agency+5