Bybit to Restrict Access for Japanese Users Amid Regulatory Pressure
Bybit, the second-largest crypto exchange by trading volume, will restrict access to its services for Japanese residents starting in 2026. This move is intended to ensure compliance with Japan's financial regulations, specifically rules on customer protection and anti-money laundering (AML).
Japan requires crypto exchanges to register with the country's Financial Services Agency and adhere to strict standards, including customer protection, asset segregation, and AML compliance. Platforms failing to meet these requirements are often forced to exit the market.
Additionally, regulators plan to require local exchanges to maintain liability reserves to safeguard users from hacks and operational failures.
Bybit has not specified which services will be affected, but affected users will receive further communications as restrictions roll out. This announcement comes after Bybit's recent return to the U.K. market following a two-year absence due to stricter crypto marketing and promotion rules.
