Bybit Plans Gradual Withdrawal from Japan Market Beginning in 2026
Bybit, one of many world’s main cryptocurrency exchanges, has introduced that it’ll discontinue its companies for Japanese residents.
The change will implement gradual account restrictions beginning in 2026. This marks a withdrawal from one in every of Asia’s fastest-growing crypto markets.
Bybit to Phase Out Access for Japanese Residents
Bybit disclosed the choice by means of an official assertion. The exchange noted that the step aligns with its efforts to comply with regulatory necessities in Japan.
“As a part of our proactive efforts to adjust to Japanese rules, now we have determined to discontinue companies for residents of Japan and regularly implement account restrictions…If you’re a resident of Japan, please notice that beginning from 2026 your account will likely be topic to gradual restrictions,” the announcement learn.
The platform, which serves round 80 million customers worldwide, acknowledged that affected users will receive follow-up updates detailing remediation steps. It additionally requested customers who have been incorrectly flagged to finish extra id checks.
These customers should end Identity Verification Lv. 2 (POA/KYC2) by January 22, 2026. Failure to take action will end result in their accounts being labeled as Japan-based and topic to restrictions.
“Please replace or full your Identity Verification Lv. 2 (POA/KYC2) as quickly as doable to make sure your continued entry to bybit.com. We respect your immediate consideration to this essential matter and apologize for any inconvenience this may occasionally trigger. We sincerely respect your understanding and assist as we improve our compliance with regulatory requirements,” Bybit added.
This step builds on earlier measures. Previously, in October 2025, the change paused onboarding new customers in Japan.
Japan’s Financial Services Agency (FSA) intensified its scrutiny of unregistered exchanges earlier in the yr. In February 2025, the company requested Apple and Google to droop app downloads for 5 platforms working with out registration in Japan.
These included Bybit, MEXC Global, LBank Exchange, KuCoin, and Bitget. Apple complied by eradicating the apps from its App Store.
Japan’s Crypto Growth Paradox
Meanwhile, Japan stays a beautiful market as a consequence of its superior adoption of cryptocurrencies. Chainalysis’s report discovered Japan noticed 120% development in on-chain worth acquired between June 2024 and June 2025. This price led all main Asia-Pacific markets, outpacing Indonesia, South Korea, India, and Vietnam.
“Among APAC’s high 5 markets, Japan noticed the strongest development,” the report noted.
The nation has made progress in the stablecoin house and built-in Bitcoin mining into its nationwide grid. However, on the identical time, regulators have been signaling tighter supervision of crypto lending and digital asset treasury (DAT) firms.
Taken collectively, these developments counsel that Japan is adopting a dual-track strategy: encouraging technological adoption and infrastructure integration whereas tightening regulatory controls to mitigate systemic and shopper dangers.
Still, regulatory complexity continues to affect investor conduct. A survey by financial advisory firm 400F, involving 894 Japanese members, discovered that tax complexity prompted 22.2% of former crypto buyers to exit the market, barely greater than the 19.4% deterred by value volatility. Current holders additionally ranked volatility (61.4%) and tax obligations (60%) as high considerations.
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