Japan’s Crypto Market Grows as Regulation Pushes Exchanges Out

[etfs]

Despite rapid crypto adoption in Japan, regulatory scrutiny is reshaping market access. Bybit’s decision to exit follows earlier steps, including a pause on new Japanese users in 2025 and app store removals ordered by regulators.

Japan recorded a 120% increase in on-chain crypto activity over the past year, leading the Asia-Pacific region. Yet regulators continue tightening oversight of unregistered exchanges, creating a paradox where market growth coexists with shrinking access to global trading platforms.

[Capybara_Capybara]

Japan loves crypto, regulators not so much.

[The_Walking_Dead]

Adoption up, access down — classic paradox.

[Revenant]

Compliance is the real cost of expansion.