Bybit Suspends New Accounts in Japan as FSA Prepares Stricter Crypto Regulations

Group 1 - Bybit, the world's second-largest cryptocurrency exchange by trading volume, will suspend new user registrations in Japan starting October 31 as part of its compliance with the Financial Services Agency's (FSA) upcoming regulatory changes [1][2] - The suspension will take effect from 12 p.m. UTC on October 31, halting new account sign-ups from Japanese residents and nationals, while existing users will not be affected [2][3] - Bybit aims to focus its efforts on reviewing local regulatory requirements and evaluating how to meet the standards set by Japanese authorities in the future [3][4] Group 2 - The FSA is introducing significant regulatory changes to strengthen investor protection and close loopholes in the current framework, particularly in a market dominated by retail traders [4] - Proposed reforms include a new legal framework to outlaw insider trading in cryptocurrencies, which is currently not covered under existing law [5] - The FSA plans to submit amendments to the Financial Instruments and Exchange Act (FIEA) in 2026, reclassifying crypto as a "financial product," which would allow for investigations and penalties related to insider trading and market manipulation [6]