TLDR:
- Bybit has been suspending new Japanese account registrations since October 2025 to comply with FSA rules.
- Identity Verification Level 2 must be completed by January 22, 2026 to avoid restrictions.
- Existing Japanese users will face gradual account restrictions starting in 2026.
- Bybit expands globally with UAE licensing and reintroduction of UK platform under Archax approval.
Bite has announced it will suspend services for Japanese residents to comply with the Financial Services Agency’s regulatory framework.
Existing accounts will face gradual restrictions starting in January 2026. The exchange clarified that users who fail to complete Identity Verification Level 2 before January 22, 2026 will be classified as residents of Japan.
This move marks the end of offshore exchange operations in Japan for platforms without local registration approval.
Regulatory Compliance and User Restrictions
Bybit is not registered with Japan’s Financial Services Agency, which requires exchanges serving Japanese users to have local approval. The platform has received previous warnings from regulators about its activities.
As part of its compliance measures, Bybit snew a. usedaccount registrations from Japan on October 31, 2025. Both individual and corporate registrations were affected, effectively halting growth in the Japanese market before formal restrictions were put in place.
The exchange clarified that users identified as residents of Japan will face rollover restrictions starting in 2026. Accounts that do not meet identity verification requirements will have limited access.
Bybit urged users to complete Identity Verification Level 2 (POA/KYC2) to avoid misclassification. The platform emphasized that operational continuity cannot be guaranteed for accounts classified as Japanese residents after the cut-off date.
Users who believe their rating is incorrect have been asked to update their verification information. Bite clear instructions given to complete the verification process.
Those who comply before the January 22, 2026 deadline will continue to have access to the platform. The exchange reiterated that account restrictions will be implemented gradually, with ongoing updates communicated directly to affected users.
Japanese residents have largely retained access to existing services until the upcoming restrictions. Bybit’s announcement signals a structured transition to regulatory compliance.
The company maintains proactive communication with users to minimize disruptions. This process is in line with Japan’s strict supervision of digital asset exchanges.
Bybit’s global operations and licensing updates
As Bybit exits the Japanese market, it continues to expand its global presence. The exchange recently re-entered the UK with a new platform offering spot trading and a peer-to-peer service.
The UK operations are conducted under an approved promotional scheme through Archax. This approach allows Bybit to operate legally while seeking full local consent.
In addition, Bybit has obtained a Virtual Asset Platform Operator License from the Securities and Commodities Authority of the United Arab Emirates.
The license followed in-principle approval granted eight months earlier, allowing formal operations in the UAE. These developments demonstrate Bybit’s focusus in the field of compliant market access in multiple jurisdictions.
Bybit is among the largest cryptocurrency exchanges in the world, processing approximately $4.3 billion in transactions every day, according to CoinGecko.
The company’s approach to regulation combines proactive compliance with continuous service innovation. Updates to operations in Japan reflect this broader global strategy.
Bybit’s phased exit from Japan is part of its ongoing efforts to align with regulatory standards. Users in other regions remain unaffected by these restrictions.
The exchange continues to maintain services for non-Japanese residents without operational changes. These steps illustrate Bybit’s commitment to maintaining legal and regulated operations worldwide.
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