Key Takeaways
- The company said the move is part of its “proactive approach” to align with Japan’s emerging regulatory framework for digital assets.
- Existing Japanese customers will not be affected for now, with all current services remaining operational, the exchange noted.
In a significant development leading crypto exchange Bybit has announced it will pause new user registrations in Japan starting October 31, as it adapts to new regulations from the country’s Financial Services Agency (FSA).
“There will be no immediate changes to the services available for existing Japanese users at this stage. Bybit will provide further updates should any additional measures be introduced in the future,” Bybit said in the statement. The exchange stressed that the measure applies to new registrations by Japanese residents and nationals.
The company said the move is part of its “proactive approach” to align with Japan’s emerging regulatory framework for digital assets. “It has always been Bybit’s commitment to operate responsibly and in compliance with local laws and regulatory expectations,” the exchange said.
In its statement, the company also apologised for any inconvenience to Japanese users and thanked the users for their “understanding and continued support.”
Existing Japanese customers will not be affected for now, with all current services remaining operational, the exchange noted. Bybit said it will share further updates as discussions with regulators progress.
Last week, it was reported that the FSA is considering regulatory reforms that would allow banks to acquire and hold cryptocurrencies such as Bitcoin and operate licensed crypto exchanges. The proposal will be reviewed at an upcoming Financial Services Council meeting, with the aim of aligning digital assets with traditional instruments like stocks and government bonds.
Japan’s Financial Services Agency (FSA) is steering crypto oversight toward the Financial Instruments and Exchange Act (FIEA), which raises custody and disclosure standards. In August, FSA proposed a “Crypto Assets and Innovation Division” to supervise the digital asset sector better.
Bybit is a giant in the digital asset space as it is the world’s second-largest cryptocurrency exchange by trading volume
