Bybit will begin winding down services for Japanese residents starting in 2026, gradually imposing account restrictions as it seeks to comply with local regulatory requirements, the cryptocurrency exchange announced on Monday.
The exchange said users identified as Japanese residents will face restrictions on a rolling basis, while those incorrectly flagged will be required to complete additional identity verification. Bybit is not registered with Japan’s Financial Services Agency, which mandates local approval for crypto exchanges serving users in the country.
“If you’re a resident of Japan, please note that starting in 2026 your account will be subject to gradual restrictions. Further updates on the remediation process will be shared in future communications,” Bybit said in its announcement.
Bybit frequently ranks as the world’s second-largest cryptocurrency exchange by daily trading volume. As of publication, it had processed approximately $4.3 billion in trades over the past 24 hours, according to CoinGecko.
Bybit halts new user registrations
The announcement follows earlier moves by Bybit to reduce its exposure to Japan. In October, the exchange said it would pause new user registrations in the country, citing ongoing discussions with Japan’s Financial Services Agency (FSA).
In February, the FSA asked Apple and Google to suspend app downloads for five unregistered cryptocurrency exchanges, including Bybit, MEXC Global, LBank Exchange, KuCoin and Bitget.
Japan enforces one of the world’s most stringent crypto regulatory frameworks. In July, Maksym Sakharov, co-founder and CEO of decentralized onchain bank WeFi, told Cointelegraph that regulatory bottlenecks in Japan are driving innovation overseas.
Bybit reenters the UK
Meanwhile, Bybit is making a return to the UK market after a two-year hiatus, launching a new platform that offers spot trading and peer-to-peer services. The exchange is operating under a promotions arrangement approved by Archax, rather than holding its own UK registration.
Last month, Bybit also obtained a Virtual Asset Platform Operator license from the United Arab Emirates’ Securities and Commodities Authority, eight months after receiving in-principle approval from the regulator.
