Japan’s Crypto Adoption Surges Even as Exchanges Retreat

[cryptohog]

Bybit’s exit highlights a growing paradox in Japan’s crypto market. While regulatory oversight is tightening, adoption continues to accelerate. According to Chainalysis, Japan recorded a 120% increase in on-chain crypto value received between June 2024 and June 2025 — the strongest growth among major Asia-Pacific markets.

At the same time, Japan’s regulators have taken a harder line against offshore platforms. In February 2025, the FSA asked Apple and Google to suspend app downloads for several unregistered exchanges, including Bybit, KuCoin, MEXC, Bitget, and LBank. Apple complied by removing the apps from its App Store, further limiting access for local users.

Despite progress in areas such as stablecoins and Bitcoin mining integration into the national grid, regulatory complexity remains a major barrier. A survey by financial advisory firm 400F found that tax burdens and reporting complexity drove more than 22% of former crypto investors out of the market, exceeding those deterred by price volatility. The data underscores Japan’s dual-track strategy: fostering innovation while enforcing some of the world’s strictest compliance standards.

[cryptoenthusiast]

Inflow of Japanese investors will shake it up, hopefully BTC will bounce back