Bybit to Suspend New Japanese User Registrations
Bybit, a prominent global cryptocurrency exchange, has announced it will temporarily cease accepting new user registrations in Japan starting October 31. This decision is a direct response to newly implemented regulations by Japan’s Financial Services Agency (FSA). The exchange's move signifies an adaptation to the country's increasingly stringent regulatory framework for digital assets, reflecting a global trend towards more regulated and transparent cryptocurrency markets.
The company stated its ongoing commitment to responsible operations and adherence to local legal and regulatory expectations. Existing Japanese clients will continue to have full access to all services without any disruption. Bybit has indicated it will provide further updates as discussions with regulatory bodies progress.
Japan's FSA Considers Allowing Banks to Hold Bitcoin
In parallel with these regulatory adjustments, reports indicate that Japan's FSA is considering a significant shift in its approach to digital assets. The agency is reportedly contemplating a regulatory overhaul that would permit licensed banks to acquire and hold cryptocurrencies, including Bitcoin (BTC) and Ethereum. This proposal is slated for discussion at an upcoming meeting of Japan’s Financial Services Council, with the aim of integrating digital assets more closely with traditional financial instruments like stocks and bonds.
The FSA is expected to develop a comprehensive framework to address the inherent risks associated with cryptocurrency volatility. This framework could mandate new capital and risk-management standards for banks before they are permitted to engage with digital assets. Such a development could potentially encourage greater institutional involvement within Japan's highly regulated banking sector.
Efforts to obtain a comment from Bybit regarding this specific development were unsuccessful at the time of publication.
Stricter Regulations Drive Crypto Innovation Out of Japan
The current regulatory environment in Japan continues to shape the strategies of cryptocurrency platforms and may be pushing startups to seek opportunities offshore. Maksym Sakharov, CEO of the decentralized banking project WeFi, previously noted that Japan's strict regulations, rather than its tax policies, are the primary drivers behind the decline in crypto innovation within the country. Despite plans for a 20% flat tax on crypto gains, Sakharov pointed out that Japan's cautious approval processes and prescriptive regulatory approach continue to deter startups and liquidity from remaining within the nation.
Sakharov further emphasized that even with potential changes to tax policies, Japan's deeply ingrained conservative risk culture and the slow pace of regulatory reforms are likely to compel many crypto entrepreneurs and investors to relocate their operations abroad. This trend could significantly impact Japan's competitive position in the global blockchain ecosystem.