Bybit Phases Out Of Japan By 2026

Bybit will begin phasing out services for Japanese residents from 2026, as the country’s stringent regulatory framework continues to squeeze unregistered global crypto exchanges out of the market.

The cryptocurrency exchange said on Monday that Japan-based users will face gradual account restrictions beginning next year, marking the latest sign of how Japan’s tough oversight regime is reshaping access to offshore trading platforms.

Bybit is not registered with Japan’s Financial Services Agency (FSA), which requires crypto exchanges serving local users to obtain regulatory approval — a high bar that has already driven several major platforms to curtail or halt operations in the country.

In its statement, Bybit explained the phasing out process

“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.”

Users who were incorrectly flagged as Japanese residents have been asked to complete additional identity verification checks as part of the rollout.

Despite its retreat from Japan, Bybit remains one of the world’s largest crypto exchanges by volume. At the time of writing, it processed roughly $4.3 billion in trades over 24 hours, according to CoinGecko data.

Regulatory pressure tightens on offshore exchanges

Bybit’s exit follows a series of regulatory moves by Japanese authorities aimed at enforcing strict compliance among crypto service providers.

In October, the exchange halted new user registrations in Japan, citing ongoing discussions with the FSA. That decision came months after regulators intensified scrutiny of unregistered exchanges operating in the country.

In February, Japan’s FSA formally requested Apple and Google to remove the mobile apps of five unregistered crypto exchanges — including Bybit, MEXC Global, LBank Exchange, KuCoin and Bitget — from their app stores, further limiting access for Japanese users.

Japan maintains one of the most tightly regulated crypto environments globally, with robust licensing requirements, capital controls and consumer protection rules. While regulators argue the framework reduces systemic risk and protects investors, industry participants have warned that it may also be stifling innovation.

In July, Maksym Sakharov, co-founder and CEO of decentralized onchain bank WeFi revealed that Japan’s regulatory bottlenecks are increasingly pushing crypto development and talent offshore.

Global contrast as Bybit expands elsewhere

While Japan tightens the screws, Bybit is expanding in other jurisdictions with more flexible regulatory pathways.

The exchange recently announced its return to the United Kingdom after a two-year pause, launching a new platform offering spot trading and peer-to-peer services. The UK operation runs under a promotions arrangement approved by digital asset firm Archax, rather than through direct registration.

The contrasting approaches highlight a growing divergence in global crypto regulation, as jurisdictions like Japan prioritize strict oversight while exchanges redirect resources toward markets offering clearer or more accommodating regulatory frameworks.

As Japan continues to enforce its hardline stance, Bybit’s gradual withdrawal underscores how regulatory pressure — rather than market demand — is increasingly determining where global crypto platforms choose to operate.