Bybit said it will begin phasing out services for residents of Japan starting in 2026, introducing gradual account restrictions as it aligns with the country’s regulatory framework.
In a notice issued Monday, the exchange said users identified as Japanese residents will face restrictions on a rolling basis. Accounts flagged in error will be asked to complete additional identity verification to confirm residency status.
Bybit is not registered with Japan’s Financial Services Agency (FSA), which requires crypto exchanges offering services to Japanese users to obtain local approval.
“If you're a resident of Japan, please note that starting from 2026 your account will be subject to gradual restrictions,” the exchange said, adding that further details on the remediation process will be shared directly with affected users.
Japan exposure narrowed in stages
The decision follows earlier steps by Bybit to limit its footprint in Japan. In October, the exchange halted new user registrations in the country while engaging with regulators.
In February, the FSA requested that Apple and Google suspend app downloads for several unregistered crypto exchanges, including Bybit, reinforcing its stance against offshore platforms serving Japanese residents without authorization.
Japan maintains one of the most restrictive crypto oversight regimes globally, with tight licensing requirements and close supervision of exchanges operating domestically. Industry executives have previously warned that the framework, while protective, has also pushed some activity offshore.
A contrast with Bybit’s UK strategy
While scaling back in Japan, Bybit is taking a different approach in the United Kingdom.
The exchange recently re-entered the UK market after nearly two years away, relaunching spot trading and peer-to-peer services under a financial promotions arrangement approved by Archax, an FCA-authorised digital asset firm. The structure allows Bybit to market its services without holding its own UK registration, a route increasingly used by global exchanges navigating Britain’s stricter promotions regime.
Bybit exited the UK in 2023 ahead of new rules that tightened onboarding standards, risk disclosures, and marketing practices. Its return comes with a narrower product offering, excluding derivatives and leveraged trading, and with prominent warnings that crypto assets are not covered by UK compensation schemes.
The contrast shows how Bybit is adapting market by market: withdrawing where regulatory access is effectively closed, while re-entering jurisdictions that offer defined, if demanding, compliance pathways.
Roman Zaika
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