one of the world’s leading cryptocurrency exchanges, has announced that it will slowly limit access to its services for users in Japan starting in 2026.
This decision comes because Japan’s Financial Services Agency (FSA) has been increasing pressure on crypto platforms to follow strict rules. Japan has some of the toughest regulations for cryptocurrency exchanges, including rules for customer protection, anti-money laundering, and asset safety.
Bybit’s phased restrictions will give Japanese users time to manage their accounts and withdraw funds safely. This step shows the importance of following local laws in the crypto market.
In a statement on December 22, Bybit confirmed that it will gradually restrict access to accounts for Japanese users starting in 2026. The company stressed that this will be a careful, step-by-step process rather than an abrupt shutdown, giving users ample time to manage their funds, adjust positions, and prepare for the upcoming service limitations.
Bybit aims to make this transition smooth while ensuring full compliance with Japan’s regulatory requirements.
Why Bybit is Exiting Japan
Japan has very strict rules for cryptocurrency exchanges. Any platform operating in the country must register with the Financial Services Agency (FSA) and follow rules to protect customers, keep funds safe, prevent money laundering, and maintain reserve funds for security.
Bybit had been offering services to Japanese users without proper registration, which led to repeated warnings from the FSA since 2021.
To avoid legal problems and follow the rules, Bybit has decided to gradually stop services for Japanese users starting in 2026. This phased exit gives users time to manage their accounts safely.
Timeline for Bybit’s Phase-Out in Japan
Bybit has stopped new user registrations from Japan and will gradually limit services for existing Japanese users throughout 2026. Here’s what will happen:
- Japanese users will face step-by-step account restrictions.
- Users flagged as Japanese must complete Level 2 KYC verification by January 22, 2026.
- Accounts that don’t complete verification may lose access to services.
Bybit says this won’t happen all at once, so users have time to manage their accounts and withdraw funds. It’s important for Japanese users to watch Bybit’s official announcements to make sure their cryptocurrencies and balances are safely withdrawn.
Impact on Japanese Crypto Users
Bybit’s decision to exit Japan highlights just how crucial compliance is in the country’s tightly regulated crypto market. Japanese users will now need to explore fully licensed local exchanges or carefully vetted international platforms that operate within the law.
While the phased shutdown may cause some short-term inconvenience, it also serves as a safeguard for investors, ensuring their funds are protected and that trading occurs in a transparent, secure environment.
This move underscores Japan’s commitment to maintaining a safe cryptocurrency ecosystem, where only compliant platforms can operate, ultimately benefiting both traders and the broader market.
