Bybit has confirmed plans to gradually withdraw from the Japanese market, announcing that services for residents of Japan will be discontinued as part of a phased process beginning in 2026.
The cryptocurrency exchange said the decision reflects its broader strategy to align operations with Japan’s regulatory framework while reducing compliance risks in jurisdictions with stringent oversight.
In an official notice, Bybit stated that account restrictions for Japan-based users will be introduced progressively rather than through an immediate shutdown of services.
As part of our proactive efforts to comply with Japanese regulations, we have decided to discontinue services for residents of Japan and gradually implement account restrictions.
Bybit said.
The exchange added that accounts identified as belonging to Japanese residents will be subject to limitations starting in 2026, with further details to be communicated in advance.
Bybit noted that it serves roughly 80 million users globally and emphasised that only accounts linked to Japan will be affected by the planned measures.
Impacted users are expected to receive follow-up notifications outlining remediation options, timelines and the steps required to maintain access where applicable.
The platform also acknowledged that some users may have been incorrectly flagged as Japan-based and urged them to complete additional verification checks.
According to the announcement, users must complete Identity Verification Level 2, including proof of address requirements, by January 22, 2026.
Bybit warned that failure to meet the enhanced verification deadline will result in accounts being classified as Japan-based and automatically subjected to restrictions.
Please update or complete your Identity Verification Lv. 2 as soon as possible to ensure your continued access to bybit.com.
Bybit said, adding that it apologised for any inconvenience.
The company described the move as an extension of earlier compliance actions, including the suspension of new user onboarding in Japan in October 2025.
Regulatory pressure in Japan has intensified, with the Financial Services Agency increasing scrutiny of overseas exchanges operating without local registration.
In February 2025, the regulator formally requested Apple and Google to halt app downloads for several unregistered crypto platforms serving Japanese users.
Bybit was among the exchanges named in the request, alongside MEXC Global, LBank Exchange, KuCoin and Bitget, signalling a tougher enforcement stance.
Apple subsequently removed the affected applications from its App Store in Japan, further limiting access for domestic users.
Despite the regulatory clampdown, Japan continues to stand out as a major growth market for digital assets across the Asia-Pacific region.
Industry data shows that Japan recorded a 120% increase in on-chain value received between mid-2024 and mid-2025, outperforming neighbouring markets.
Analysts note that Japan is pursuing a dual-track approach by supporting crypto infrastructure development while tightening oversight of trading, lending and treasury activities.
Surveys of Japanese investors suggest regulatory complexity and tax obligations remain key deterrents, shaping both platform strategies and user participation in the market.