Bybit, recognized as the world’s second-largest cryptocurrency exchange by trading volume, has announced a temporary halt on onboarding new users in Japan. This decision, effective from October 31, 2025, at 12 PM UTC, is part of Bybit’s strategy to align with the regulatory framework established by Japan’s Financial Services Agency (FSA).

The exchange’s move reflects its commitment to operating responsibly and in compliance with local laws and regulatory expectations. Bybit aims to focus its efforts and resources on reviewing local regulatory requirements and evaluating how to best meet the standards outlined by Japanese authorities in the future.

Impact on New and Existing Users

Starting from the specified date, Bybit will no longer accept new account registrations from Japanese residents or nationals, collectively referred to as “Japan Customers.” This pause in new user onboarding is a proactive measure to ensure compliance with evolving regulations.

For existing users in Japan, there will be no immediate changes to the services currently available. Bybit has assured its users that further updates will be provided should any additional measures be introduced in the future.

The company expressed its apologies for any inconvenience this decision may cause to its Japanese users and appreciated their understanding and continued support. The announcement was made here.

Why This Matters: Impact, Industry Trends & Expert Insights

Bybit has announced a temporary halt on new user registrations in Japan, aligning with the country’s evolving regulatory framework. This move underscores Bybit’s commitment to comply with the Financial Services Agency’s (FSA) standards.

Recent industry reports indicate that Japan’s FSA is working on classifying cryptocurrencies as financial products, aiming to enhance oversight and introduce stricter regulations, including insider trading rules. This aligns with Bybit’s decision to pause new user onboarding as the exchange seeks to align with these regulatory changes.

As per insights from BeInCrypto, Japanese regulators have been escalating enforcement against unregistered exchanges, including Bybit, by requesting the removal of their apps from major app stores. This supports Bybit’s proactive measure to halt new registrations, reflecting a significant regulatory tightening aimed at protecting consumers and maintaining market integrity.

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