Key Updates on Bybit's Operations in Japan
Bybit will suspend new account registrations for Japanese residents and nationals starting October 31, 2025, at 12 PM UTC. This decision is intended to align its operations with the evolving regulatory requirements set forth by Japan’s Financial Services Agency (FSA) and upcoming regulatory changes.
The cryptocurrency exchange has confirmed that this suspension will exclusively affect new users. Existing Japanese users will continue to have uninterrupted access to Bybit’s services. The company is currently dedicating resources to assess and meet the increasingly stringent compliance requirements within Japan’s dynamic crypto regulatory landscape.
Regulatory Environment and Exchange Challenges
Japan's primary financial regulator, the FSA, has proposed reclassifying crypto assets as securities under the Financial Instruments and Exchange Act (FIEA). This proposed change would introduce more rigorous operational and compliance standards for cryptocurrency exchanges operating within the country.
Bybit's decision to suspend new registrations follows a significant security incident in February 2025, where the platform experienced a hack resulting in a loss of approximately $1.5 billion. This breach was reportedly linked to the Lazarus Group. In the aftermath of this incident, Bybit enhanced its transparency measures by initiating the release of monthly proof-of-reserve reports, which are independently verified by Hacken.
These reports have consistently shown that Bybit's reserves have remained fully solvent, exceeding 100% in the days following the breach. This commitment to transparency played a crucial role in stabilizing user confidence during one of the most substantial hacks in the history of the cryptocurrency industry.
Japan is actively developing a comprehensive regulatory framework through the FSA, which includes plans for the establishment of a dedicated Crypto Assets and Innovation Division. This new division is expected to bolster oversight capabilities and foster innovation within the rapidly evolving digital asset sector.
While the creation of new accounts will be paused, existing Japanese users will not experience any immediate changes to their current services. Bybit has indicated that it will provide further updates as Japan’s regulatory environment continues to progress and stabilize.
The exchange's proactive stance reflects an increasing trend towards engaging with regulatory bodies and adapting to evolving compliance demands. Although Bybit has not yet announced a timeline for its potential re-entry into the Japanese market for new users, it is expected to do so once the regulatory framework is fully finalized and Bybit can operate under compliant conditions.