Bybit Pulls Back From Japan: Services to End in 2026

Cryptocurrency exchange Bybit will discontinue services for Japanese residents beginning in 2026. The platform announced gradual account restrictions as part of efforts to comply with the country’s regulatory framework.

🚨 JUST IN: BYBIT WILL BEGIN WINDING DOWN SERVICES FOR JAPANESE USERS FROM 2026 TO COMPLY WITH LOCAL REGULATIONS. pic.twitter.com/iNonvlWMpg

— Coinwaft (@coinwaft) December 23, 2025

Users classified as Japanese residents will face restrictions on a rolling basis. Bybit has asked those who believe they were incorrectly flagged to complete additional identity verification by January 22, 2026.

The exchange is not registered with Japan’s Financial Services Agency (FSA). Japanese law requires crypto platforms serving local users to obtain approval from the regulator before operating.

If you’re a resident of Japan, please note that starting from 2026 your account will be subject to gradual restrictions. You’ll receive additional updates on the remediation process in subsequent communications.

Bybit stated in its Monday announcement

Bybit’s Gradual Withdrawal From Japan

The latest announcement follows earlier steps by Bybit to reduce its footprint in Japan. In late October, the exchange paused new user registrations in the country.

At that time, Bybit cited ongoing discussions with the FSA as the primary reason for halting onboarding. The company described the move as a “proactive approach” to align with Japan’s emerging regulatory framework.

It has always been Bybit’s commitment to operate responsibly and in compliance with local laws and regulatory expectations.

the exchange stated during the October announcement.

Existing Japanese customers were told their services would remain operational at that stage. However, the December announcement now confirms those users will eventually lose access to the platform.

Bybit has provided affected users with a pathway to maintain their accounts. Those who dispute their classification as Japanese residents must complete Level 2 identity verification, including proof of address documentation.

Users who fail to complete verification by the January deadline will automatically be classified as Japanese residents. This classification will trigger the gradual restriction process on their accounts.

Global Expansion Continues Elsewhere

While pulling back from Japan, Bybit has secured regulatory approvals in other major markets. The exchange received a full Virtual Asset Platform Operator License from the UAE‘s Securities and Commodities Authority in October 2025.

Bybit Secures UAE’s First Virtual Asset Platform Operator License from Securities and Commodities Authority

Ben Zhou, Co-founder and CEO of Bybit, said: “Receiving the full Virtual Asset Platform Operator License from the SCA is a testament to Bybit’s unwavering commitment to… pic.twitter.com/IH5p3GbODz

— Bybit (@Bybit_Official) October 9, 2025

This approval came eight months after UAE regulators granted the company in-principle authorization. The license allows Bybit to offer its complete product suite to users in the region.

Receiving the full Virtual Asset Platform Operator License from the SCA is a testament to Bybit’s unwavering commitment to building trust through compliance and transparency.

said Bybit co-founder and CEO Ben Zhou.

Zhou highlighted the UAE’s position as a global leader in digital asset regulation. He stated that the approval reflects the strength of Bybit’s security and governance standards.

Meanwhile, Austrian authorities granted the exchange similar licensing approval in May 2025. Bybit also registered in India in February after briefly suspending services there.

The India registration came after the company paid a $1 million fine over compliance violations. This pattern suggests Bybit is willing to work with regulators but prioritizes markets where licensing is achievable.

Japan’s strict regulatory environment has proven challenging for several international crypto platforms. The FSA maintains rigorous requirements for exchanges operating within its jurisdiction.

The withdrawal marks a strategic decision by the world’s second-largest crypto exchange by trading volume. Bybit appears to be focusing resources on jurisdictions where it can obtain proper authorization.

Japanese users should monitor their email for further updates from the exchange. Bybit has indicated additional communications will follow regarding the timeline and process for account closures.