Bybit, the popular crypto exchange, is planning to gradually quit Japan by 2026. Bybit is taking this extreme step to exit the Japanese market due to regulatory disputes. As per Bybit’s announcement, the development has occurred after years of scrutiny by the Financial Services Agency (FSA) since 2021. Google and Apple have been ordered to remove the Bybit app from their stores operating in Japan.
Bybit will end services for users in Japan by January 2026, with those who have not completed Identity Verification Level 2 (KYC2) automatically subject to restrictions. This follows the prior suspension of unique registrations for Japan-based consumers on October 31, and marks a clear move toward a complete service shutdown. Bybit says such measures are necessary to align with Japan’s stringent regulatory framework, and it has also highlighted concerns about possible misclassification of consumer residency. This uncertainty has pushed consumers to start exploring substitute platforms.
Clients who believe they have been misclassified as Japanese can accomplish KYC2 documentation ahead of January 22 next year to maintain access. Nonetheless, the crypto exchange also asserted that it will provide details of asset withdrawal procedures and account transformations later on. The ongoing uncertainty follows a prolonged regulatory battle between Bybit and Japan’s regulators and broader tightening under the FSA and the Financial Instruments and Exchange Act. Keeping this in view, Bybit has advised Japanese clients to relocate assets in their possession and get ready for the transition.
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