Bybit to discontinue services for Japanese residents, citing regulations
Analysis
Price Impact
LowBybit, a major exchange, discontinuing services for japanese residents due to regulations will primarily affect users in japan and bybit's market share there. while bybit is significant globally, this withdrawal from one country, even a regulated one like japan, is unlikely to cause a substantial, broad market price movement. it highlights regulatory challenges but isn't a systemic threat.
Trustworthiness
HighThe news comes from cointelegraph, a reputable crypto news source, citing direct announcements from bybit and interactions with the japanese fsa. the information is clear and fact-based.
Price Direction
NeutralThe decision is a regulatory compliance move specific to japan, not indicative of a wider market collapse or fundamental shift in crypto adoption. while japanese users might migrate assets to compliant exchanges or sell, the phased nature of the restrictions (until 2026) allows for an orderly transition, mitigating sharp market reactions. it does, however, underscore regulatory hurdles in certain jurisdictions.
Time Effect
LongThe restrictions are phased, starting in 2026, giving users ample time to adjust and move their assets. this long-term phasing prevents immediate market shock and allows for a gradual impact on bybit's operations in japan and user behavior.
Original Article:
Article Content:
Amin Haqshanas 1 minute ago Bybit to discontinue services for Japanese residents, citing regulations Bybit will phase out services for Japan-based users starting in 2026, following earlier steps to halt new registrations. Listen 0:00 News COINTELEGRAPH IN YOUR SOCIAL FEED Bybit will discontinue services for residents of Japan and begin rolling out gradual account restrictions to comply with local regulatory requirements. The cryptocurrency exchange will impose phased restrictions beginning in 2026 on customers classified as Japanese residents. Users who were incorrectly classified have been asked to complete identity verifications. “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,” the exchange said in an announcement on Monday. Bybit often ranks as the world’s second-largest crypto exchange by daily trading volume. At the time of writing, it processed about $4.3 billion in trades in 24 hours, according to CoinGecko data. Top five crypto exchanges by volume. Source: CoinGecko Related: Japan plans tough new rules for crypto exchanges: What liability reserves actually mean Bybit halts new user registrations The announcement follows earlier steps taken by Bybit to limit its exposure to Japan. In October, the exchange said it would pause new user registrations in Japan, citing ongoing discussions with the country’s Financial Services Agency (FSA). In February, the FSA asked Apple and Google to suspend downloads of five unregistered cryptocurrency exchanges, including Bybit, MEXC Global, LBank Exchange, KuCoin and Bitget. Japan maintains one of the world’s strictest crypto oversight regimes. In July, Maksym Sakharov, co-founder and CEO of decentralized onchain bank WeFi, told Cointelegraph that Japan’s regulatory bottleneck is pushing innovation out of the country. Bybit did not respond to Cointelegraph’s request for comment by press time. Related: Japan’s new crypto tax could wake ‘sleeping giant’ of retail investors Bybit reenters the UK Meanwhile, Bybit is reentering the UK market after a two-year pause with a new platform offering spot trading and a peer-to-peer service, operating under a promotions arrangement approved by Archax rather than its own UK registration. Last month, Bybit also secured a Virtual Asset Platform Operator License from the Securities and Commodities Authority of the United Arab Emirates, eight months after receiving an in-principle approval from the local regulator. Magazine: 2026 is the year of pragmatic privacy in crypto — Canton, Zcash and more # Cryptocurrencies # Japan # Cryptocurrency Exchange # United Kingdom # Regulation # Bybit Add reaction