Bybit Stops Taking New Japanese Users as Crypto Rules Tighten

Bybit, the second-largest crypto exchange by trading volume, announced it will stop accepting new account registrations from Japanese residents and nationals starting October 31, 2025. This proactive measure allows the exchange to focus on understanding and complying with major regulatory changes proposed by Japan's Financial Services Agency (FSA). The FSA is shifting crypto oversight from the Payment Services Act to the stricter Financial Instruments and Exchange Act, treating digital assets more like securities and imposing tougher standards on exchanges. Bybit has a history of regulatory issues in Japan, having been warned multiple times for operating without proper registration. This move occurs as Japan is actively working to enhance its crypto market, which boasts over 12 million accounts, by proposing significant tax cuts on crypto gains and potentially launching regulated Bitcoin and Ethereum ETFs. The regulatory tightening signals a clear path for compliant exchanges to grow, exemplified by PayPay's recent investment in Binance Japan, while non-compliant or hesitant exchanges face increased pressure.

(Source：Brave New Coin)