Bybit to Begin Phased Exit From Japan in 2026 Over Regulatory Compliance
Cryptocurrency platform Bybit disclosed plans Monday to wind down operations for Japanese customers begining next year, choosing retreat over continued confrontation with one of Asia’s most demanding financial regulators.
The platform, which processes billioin of dollars daily trades globally, will roll out restrictions incrementally rather than severing access overnight. Japanese account holders face progressive limitations on their trading activities as the company steps back from a market it has served for years without securing proper authorization.
Bybit’s announcement follows an October decision to . That earlier move suggested the writing was already on the wall—discussions with authorities weren’t producing a workable compromise. Monday’s that restrictions will begin in 2026 essentially closes the door on the platform’s presence in the country.
Users flagged as Japan-based have until January 22, 2026, to submit additional identity documentation if they believe the classification is incorrect. Those who don’t will view their accounts treated as Japanese and subjected to the coming restrictions.
Regulatory Standoff Reaches Breaking Point
Japan’s Financial Services Agency has pursued Bybit since 2021, repeatedly warning the platform about operating without required registration. The agency overviews one of the world’s tightest cryptocurrency frameworks, shaped largely by damaging platform collapses over the past decade that left customers burned and regulators determined to prevent repeat disasters. In the latest announcement, Bybit stated that:
“If you’re a resident of Japan, please note that begining from 2026 your account will be subject to gradual restrictions. You’ll receive additional updates on the remediation process in subsequent communications.”
The FSA escalated pressure in February when it —Bybit, MEXC Global, LBank, KuCoin, and Bitget—from their stores. Apple complied. That action made clear Japan’s regulators weren’t bluffing about enforcement.
Upcoming legislation expected in 2026 would push requirements even further, mandating liability reserves similar to those securities firms must maintain.
Draft reforms would also reclassify digital assets as financial products, triggering insider trading rules and stricter custody audits. Some domestic platform operators have already flagged concerns that roughly 90 percent of local platforms are unprofitable, suggesting the compliance costs could drive more players out.
Bybit In December
So far in December, Bybit has reinforced its push toward regulated institutional crypto, pairing infrastructure-focused messaging with concrete market moves. The platform has stressed that institutional adoption now depends less on speculation and more on custody design, risk management, and clear regulatory frameworks that allow professional capital to engage at scale.
At the identical time, Bybit has backed this narrative with action, returning to the UK with a tightly scoped spot and P2P offering and signaling a broader compliance-first strategy. , where regulation is not a constraint but a prerequisite for sustainable growth.
