Bybit Announces Phased Exit from Japan Market by 2026 Amid Regulatory Pressure

In a significant development for the Asian cryptocurrency landscape, Bybit, one of the world's largest crypto exchanges, has confirmed it will wind down its services for Japanese users, with a complete exit planned by 2026. This strategic retreat is a direct response to Japan's increasingly stringent and complex regulatory environment, which has placed intense scrutiny on offshore, unregistered trading platforms. The decision underscores the growing global trend of national regulators asserting greater control over the digital asset sector, often forcing international players to choose between costly compliance or market withdrawal. The exit will not be immediate. Bybit has opted for a measured, phased approach designed to minimize disruption for its existing user base in Japan. The plan involves implementing incremental restrictions over the coming months, beginning with a halt to new account registrations for Japanese residents. Subsequently, the exchange will gradually limit available trading features and pairs. This structured wind-down provides current users with a substantial grace period—extending into 2026—to manage their positions, withdraw assets, and transition to alternative, fully compliant platforms within Japan's regulated ecosystem. This move highlights the critical challenge global crypto exchanges face: balancing expansive growth with the patchwork of national regulations. Japan's Financial Services Agency (FSA) has been particularly active, enforcing rules that demand robust consumer protection measures, strict anti-money laundering protocols, and localized operational standards. For Bybit, the cost and operational complexity of achieving full registration under these rules likely outweighed the strategic value of the Japanese market segment. The announcement serves as a reminder that regulatory clarity, while often seen as a hurdle, is ultimately essential for the long-term integration of cryptocurrencies into the traditional financial fabric. For the broader market, it signals a maturation phase where established jurisdictions are setting the terms of engagement, potentially leading to further consolidation and a clearer divide between compliant and non-compliant venues.

Bybit to Exit Japan Market in 2026

Bybit, one of the world's largest cryptocurrency exchanges, will begin winding down services for Japanese users by 2026. The phased exit aligns with Japan's stringent regulatory framework, which has intensified scrutiny of unregistered offshore platforms.

The exchange plans incremental restrictions—halting new account registrations and limiting trading features—rather than an immediate shutdown. This approach allows existing users ample time to withdraw funds and close positions without market disruption.

Japan's Financial Services Agency has been tightening oversight of foreign crypto firms operating without local registration. Bybit's decision reflects the growing compliance pressures facing global exchanges in regulated markets.

Bybit to Phase Out Services for Japanese Users by 2026 Amid Regulatory Pressure

Bybit, the cryptocurrency exchange, will discontinue services for Japanese residents starting in 2026. The decision stems from its lack of registration with Japan's Financial Services Agency (FSA), which mandates strict compliance for crypto platforms operating in the country.

Japanese users will face gradual account restrictions, with mandatory KYC Level 2 verification required by January 22, 2026, to avoid limitations. Bybit has advised users incorrectly flagged as Japanese residents to complete additional identity checks promptly.

Despite retreating from Japan, Bybit continues its global expansion, having reentered the UK market and secured a full crypto license in the UAE. Japan's stringent regulatory environment has forced several crypto firms to reassess their operations in the region.