Bybit to Restrict Accounts for Japanese Users from Jan 2026, Citing FSA Rules

Bybit will roll out phased account restrictions for users it identifies as Japanese residents starting January 2026 to comply with Japan’s Financial Services Agency (FSA). The exchange halted new Japanese registrations on October 31, 2025 and set January 22, 2026 as a key cutoff: any account that has not completed Identity Verification Level 2 by that date may be treated as a Japanese resident and subjected to restrictions. Bybit said restrictions will be applied on a rolling basis, allows users who believe they were misclassified to submit additional KYC, and framed the move as proactive compliance while dialogue with regulators continues. The company warned operational continuity for impacted accounts is not guaranteed. The decision follows intensified FSA scrutiny — including requests in February to app stores to remove unregistered exchange apps — and broader Japanese tightening after prior exchange failures. Concurrently, Bybit is reallocating resources to jurisdictions with clearer rules, re-entering the UK spot market via a promotions arrangement with Archax and securing a UAE Virtual Asset Platform Operator licence. Traders should watch for reduced order flow and local liquidity from restricted Japanese access, potential short-term volatility in pairs with notable Japanese participation, and any future market impact if Bybit later obtains local registration and returns. Primary keywords: Bybit, Japan regulation, FSA, account restrictions, KYC, UK expansion, UAE licence.