ByBit has decided to put an end to its services in Japan, the company said in an official announcement on Monday. The exchange, touted as among the largest in the world, reportedly needs time to comply with Japan’s crypto regulatory framework.
In the coming weeks, Dubai-headquartered ByBit will be implementing account restrictions in Japan, it said in its statement.
“If you’re a resident of Japan, please note that starting from 2026 your account will be subject to gradual restrictions. You’ll receive additional updates on the remediation process in subsequent communications,” the exchange noted.
ByBit has informed its user base that those who receive Japan-related notifications incorrectly need to re-verify their identities. It said those who fail to complete their ID verification by January 22, 2026 – they will be recognized as a Japanese user and may lose access to ByBit’s services.
“We sincerely appreciate your understanding and support as we enhance our compliance with regulatory standards,” the exchange added.
Japan is among countries that are in the process of finalizing its crypto rules. This year, the Japanese finance minister said crypto is indeed a portfolio diversifier after the national Financial Services Authority (FSA) said the country’s crypto rules could be finalized by 2026.
Letting banks store crypto, banning insider trading, considering flat 20 percent tax on crypto gains, and having crypto players set up hack liability reserves are highlights from Japan’s approach towards crypto rules so far.
For now, ByBit has not exactly detailed what were the regulations that it was not in compliance with. Besides, whether or not the exchange plans a re-entry into the Asian nation remains unclear for now.
The year of 2025 was off to a rocky start for ByBit. The exchange was hacked for $1.5 billion in February – making for the largest attack of the year. North Korean hackers have been blamed for facilitating the attack. The exchange now wishes to ensure that its user finances are safe and under compliance in different markets overall.
The exchange had already paused new user registration in Japan starting October 31 calling the move a “proactive compliance measure”.