Crypto exchange Bybit to restrict access for Japanese users as regulatory pressure mounts
TL;DR
Bybit will restrict access for Japanese users starting in 2026 to comply with Japan's strict crypto regulations on customer protection and anti-money laundering. The move follows similar regulatory challenges in other markets like the UK.
Key Takeaways
- •Bybit will begin restricting services for Japanese residents in 2026 to comply with local financial regulations.
- •Japan has stringent crypto rules requiring exchanges to register with the Financial Services Agency and follow customer protection and anti-money laundering standards.
- •The announcement comes shortly after Bybit returned to the UK market after previously exiting due to regulatory changes.
What to know:
- Bybit will restrict access to its services for Japanese residents starting in 2026 to comply with that country's financial regulations.
- Japan has strict crypto regulations, and Bybit's move aims to ensure compliance with rules on customer protection and anti-money laundering.
- Bybit will restrict access to its services for Japanese residents starting in 2026 to comply with that country's financial regulations.
- Japan has strict crypto regulations, and Bybit's move aims to ensure compliance with rules on customer protection and anti-money laundering.
The second-largest cryptocurrency exchange by trading volume, Bybit, said it will begin restricting access to its services for residents of Japan next year as part of an effort to comply with the country’s financial regulations.
The company did not specify which services would be affected, but said impacted users will receive further communication as the restrictions roll out.
Japan has some of the most stringent crypto regulations globally. Exchanges operating in the country must register with the Financial Services Agency and follow rules on customer protection, asset segregation and anti-money laundering.
Platforms that fail to meet these standards are typically forced to exit the market. Japan’s regulator is also planning on requiring local cryptocurrency exhcnages to maintain liability reserves to protect users from hacks and other operational failures.
The announcement comes just days after Bybit said it had returned to the U.K., two years after stricter crypto marketing and promotion rules forced the exchange out of that country.
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