Bybit to Restrict Services for Japanese Users Next Year Amid Tighter FSA Rules

Published: 2025-12-24 05:04:35 |

Bybit, the world’s second-largest crypto exchange by trading volume, will begin restricting services for Japanese residents in 2026 to comply with Japan’s stricter Financial Services Agency (FSA) rules. The company has not detailed which products or exact timelines will be affected but said impacted users will receive direct notifications as restrictions roll out. Japan’s regime requires exchanges to register with the FSA and meet stronger customer protection, asset segregation and anti-money-laundering standards; regulators are also considering mandatory reserve funds for local platforms to cover hacks and operational failures. The move follows Bybit’s recent resumption of U.K. operations after a regulatory-driven hiatus. Traders should note potential effects: reduced onshore access to Bybit liquidity and order flow for Japanese participants, migration of users to FSA-registered local platforms, and heightened compliance risk for offshore venues. Primary keywords: Bybit, Japan regulation, FSA compliance. Secondary/semantic keywords: exchange restrictions, reserve funds, AML, asset segregation, liquidity impact.

Neutral

The announcement is primarily regulatory and specific to Bybit’s service availability for Japanese residents rather than a protocol-level event for a particular cryptocurrency. There is no direct mention of a specific token whose economics are affected; the impact is on market access and liquidity for Japan-based traders. In the short term this could reduce onshore liquidity and order flow originating from Japanese users on Bybit, potentially causing small localised price slippage or wider spreads for affected pairs. Some traders may migrate to FSA-registered domestic venues, concentrating liquidity elsewhere rather than reducing overall market demand. In the medium to long term, enforced reserve funds and stricter compliance could strengthen confidence in registered local exchanges, stabilising local markets. Overall, effects are market-structure and access-related rather than clearly bullish or bearish for any single cryptocurrency, so the categorisation is neutral.