Bybit is set to gradually scale back its services for users in Japan starting in 2026. This decision comes amid increasing regulatory pressures in one of the world’s most tightly regulated cryptocurrency markets. As the platform withdraws from Japan, it simultaneously expands its reach into the UK and the Middle East, where regulatory frameworks are more accommodating.
Regulatory Pressure in Japan
The measured retrenchment will apply to accounts identified as belonging to Japanese residents. Bybit plans to implement these changes progressively rather than abruptly, aligning with regulatory expectations. Users who believe they have been inaccurately classified will be encouraged to undergo additional identity verification to confirm their status.
Currently, Bybit is not registered with Japan’s Financial Services Agency, which mandates that cryptocurrency platforms catering to Japanese clients must obtain local approval before offering their services. Japan’s regulatory landscape is historically known to be one of the strictest globally, influenced by previous exchange failures and consumer protection issues. This stringent framework has restricted foreign platforms from operating freely without local licenses.
Bybit’s phased withdrawal reflects the growing challenges faced by unregistered foreign exchanges in maintaining access for Japanese users.
Previous Restrictions in Japan
This latest development builds upon prior actions taken by Bybit to limit its exposure to the Japanese market. In October, the exchange halted new user registrations in Japan, citing ongoing discussions with regulators about compliance. This indicated that continuing full operations without registration was becoming increasingly untenable.
Regulatory scrutiny intensified in February when the Japanese Financial Services Agency requested that app stores managed by Apple and Google suspend the downloads of five unregistered cryptocurrency platforms. Alongside Bybit, this list included MEXC Global, LBank Exchange, KuCoin, and Bitget, reinforcing Japan’s commitment to strict user access controls.
Industry leaders have warned that such regulatory bottlenecks are driving innovation elsewhere. Maksym Sakharov, co-founder and CEO of WeFi, noted in July that the rigorous oversight in Japan is pushing cryptocurrency development to other jurisdictions where regulations are more favorable. Despite the country’s retreat from the crypto scene, Bybit remains one of the world’s most active exchanges, increasingly adopting jurisdiction-specific strategies to balance compliance with regional opportunities.
Expansion Beyond Japan
As Bybit reduces its footprint in Japan, it simultaneously works to bolster its presence in other markets. The exchange is returning to the UK after a two-year hiatus, launching a platform that provides spot trading and peer-to-peer services.
This UK initiative is structured under a promotional agreement approved by Archax instead of via direct registration in the UK. In addition, Bybit solidified its position in the Middle East recently by securing a virtual asset platform operator license from the UAE’s Securities and Commodities Authority, just eight months after receiving preliminary approval. This license enables the platform to expand its services in a region that has actively positioned itself as a hub for digital asset companies.
Meet William, a proud Bethel University alumnus with a fervent passion for lifestyle and culture topics. His keen interest doesn’t stop there; he’s also deeply engrossed in current events of all kinds. William dedicates himself wholeheartedly to this site, thriving on the collaborative energy he shares with Suzanne, his long-standing partner in crime.
Having navigated their university courses side by side for years, their teamwork on the site is nothing short of dynamic. Together, they bring a unique blend of insights, proving that two heads are indeed better than one in delivering compelling content.
