Why Bybit will end services in Japan

Core Viewpoint - Bybit will cease operations for Japanese residents in January due to regulatory pressure from Japan's Financial Services Agency (FSA) [1][2][4] Group 1: Regulatory Actions - The FSA has been pressuring Bybit since May 2021, issuing multiple warnings and ultimately leading to the exchange's decision to terminate services for Japanese customers [2][4] - Bybit's withdrawal follows a pattern of regulatory actions against overseas exchanges that provide services to Japanese residents, with the FSA actively enforcing compliance since 2017 [4] Group 2: User Impact - Bybit claims to have over 70 million users globally, and its exit from the Japanese market is expected to significantly impact many domestic users [6] - Users identified as Japanese residents will face account restrictions starting in 2026 unless they complete proof of address checks by January 22, 2026 [3] Group 3: Market Dynamics - Analysts speculate that Bybit's recent actions may be a strategic move towards officially entering the Japanese market, similar to Binance's approach in the past [5] - The FSA's regulatory environment has led to other exchanges, like Binance, adapting their strategies to comply, including acquiring local exchanges [5]