Bybit to Exit Japan as Regulatory Pressure Intensifies

[cryptohog]

Cryptocurrency exchange Bybit has announced plans to discontinue services for residents of Japan, signaling a full withdrawal from one of Asia’s fastest-growing crypto markets. The exchange will begin implementing gradual account restrictions starting in 2026, citing the need to comply with Japan’s regulatory framework.

In an official statement, Bybit said affected users would receive further guidance on remediation steps. Japanese residents must complete Identity Verification Level 2 (proof of address and enhanced KYC) by Jan. 22, 2026, or risk having their accounts classified as Japan-based and restricted. Users who believe they were incorrectly flagged are also required to complete the additional verification process to retain access.

This move follows earlier action by Bybit in October 2025, when it halted new user registrations in Japan. The decision comes as the country’s Financial Services Agency (FSA) continues to ramp up scrutiny of unregistered crypto exchanges operating in the region.

[johnblockbuster]

Classic crypto move exit markets when the rules get too strict for comfort