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- Bybit stops new Japanese registrations from Oct. 31, 2025.
- Existing users remain unaffected; company commits to compliance.
- Japan’s strict regulations continue to challenge crypto innovation.
Bybit, the world’s second-largest cryptocurrency exchange by trading volume, announced it will pause new user registrations in Japan starting October 31, 2025. The decision comes as the company navigates new regulations from Japan’s Financial Services Agency (FSA), signaling a “proactive approach” to compliance.
Existing Japanese users will continue to access all services, with Bybit promising further updates as discussions with regulators progress. “It has always been Bybit’s commitment to operate responsibly and in compliance with local laws and regulatory expectations,” the exchange stated in its announcement.
FSA eyes broader crypto integration
Japan’s FSA is reportedly exploring regulatory reforms that would allow banks to acquire and hold cryptocurrencies such as Bitcoin and operate licensed crypto exchanges. The agency aims to align digital assets with traditional instruments like stocks and government bonds while introducing capital and risk-management standards to address crypto volatility.
These changes could open doors for institutional adoption within Japan’s regulated banking sector, potentially providing a more structured and safer environment for digital assets.
Also Read: Printr Unveils Multi-Chain Token Launchpad Backed by Bybit
Regulatory bottlenecks drive crypto exodus
Despite these potential reforms, experts say Japan’s regulatory environment continues to challenge crypto innovation. Maksym Sakharov, co-founder of WeFi, told Cointelegraph that slow, prescriptive approval processes—not taxes—are driving startups and liquidity offshore. Even with a proposed 20% flat tax on crypto gains, Japan’s risk-averse culture could continue to push digital finance activity to more favorable jurisdictions.
Looking ahead
Bybit’s registration pause reflects the delicate balance between compliance and growth in heavily regulated markets. While existing users remain unaffected, Japan’s crypto community will closely watch how the FSA’s proposed reforms unfold and whether institutional involvement can revitalize local crypto activity.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
