Bybit, one of the world’s largest cryptocurrency exchanges, will suspend new user onboarding in Japan starting tomorrow (Friday). This affects both Japanese residents and nationals.
Comply with local laws
In a press release today (Thursday), the exchange said the move was made “as part of a proactive approach to accommodate local regulations and align with the evolving framework set by Japan’s Financial Services Agency (FSA).”
However, Bybit stressed that its existing customer base in Japan will not face any “immediate changes to the service.”
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According to CoinMarketCap.com, Bybit is the second largest cryptocurrency exchange by trading volume. In the past 24 hours, the exchange processed more than $4.6 billion in spot trading volume and approximately $17.2 billion in derivatives. It is only second to Binance.
“Bybit has always been committed to operating responsibly and in accordance with local laws and regulatory expectations,” the press release states.
“This decision allows Bybit to focus its efforts and resources on reviewing local regulatory requirements and evaluating how best to meet the standards outlined by Japanese authorities in the future.”
Meanwhile, Bybit recently obtained a full crypto license in the United Arab Emirates. This will allow exchanges to operate virtual asset trading, brokerage, custody, and fiat currency conversion services in the country.
Major markets for retail transactions
Japan is an important retail trading market. Although the country locally regulates financial services companies, many offshore brands also operate in the country, primarily through reverse solicitation of local customers.
FinanceMagnates.com Capital.com previously reported that it was planning to acquire a Japanese license. Additionally, ThinkMarkets acquired local FX company Japan Affiliate in 2021, and Plus500 acquired a Japanese broker in 2022. However, Japan’s contract for difference (CFD) market is dominated by major local companies such as DMM, GMO Click, Gaitai, and Hirose.
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