Core Viewpoint - Bybit will discontinue services for Japanese residents starting in 2026 to comply with local regulations, marking a complete withdrawal from the Japanese market [1][4]. Regulatory Pressure - The decision follows increased regulatory scrutiny from Japan's Financial Services Agency (FSA), which has intensified oversight of unlicensed crypto platforms [2]. - Bybit had previously suspended new user registrations from Japan in October 2024 to assess compliance with local regulations [2]. Compliance History - Japan's regulatory framework for crypto exchanges has been in place since 2017, requiring FSA-issued permits for platforms serving Japanese residents [3]. - The FSA issued formal warnings to Bybit in November 2024 and March 2023 for operating without proper authorization [3]. Service Disruption - Following the October registration pause, existing services remained operational until the latest announcement, which signifies a full market exit [4]. - Apple blocked Japanese users from downloading Bybit's app in February, indicating further operational challenges in the region [4]. Customer Engagement - The FSA has claimed that Bybit targets Japanese clients through Japanese-language interfaces and customer support despite lacking domestic licenses [5]. - Bybit has apologized for any inconvenience and will provide updates to affected users regarding the remediation process [5]. Global Strategy - Bybit is facing regulatory challenges across Asia and is exploring relocation of staff to Dubai and Hong Kong, where regulatory frameworks are more favorable [6]. - The exchange is reportedly in talks to acquire Korbit, South Korea's fourth-largest crypto exchange, to facilitate its entry into the South Korean market [7].

The second-largest cryptocurrency exchange by trading volume, Bybit, said it will begin restricting access to its services for residents of Japan next year as part of an effort to comply with the country’s financial regulations. The company did not specify which services would be affected, but said impacted users will receive further communication as the restrictions roll out. Japan has some of the most stringent crypto regulations globally. Exchanges operating in the country must register with the Fina ...

Core Insights - Solana-based decentralized exchanges (DEXes) have reportedly surpassed trading volumes of major centralized exchanges like Binance and Bybit during late 2025, indicating a significant shift in crypto price discovery directly onto the blockchain [1][2] - The on-chain activity and trading volumes on Solana DEXes, including Jupiter, Orca, and Raydium, have reached new records, driven by traders seeking faster and cheaper trading venues [1][3] Trading Volume and Performance - Solana DEX volume has consistently matched or exceeded that of major centralized exchanges during the final quarter of 2025, with Raydium clearing over $100 billion in monthly volume for three consecutive months and total Solana DEX volume surpassing $120 billion in certain months [3] - Daily trading volume on Solana DEXes has at times exceeded $3.8 billion, outperforming the combined volume of Ethereum and Base [7] Advantages of Solana DEXes - The advantages of Solana DEXes stem from their speed and low transaction fees, with the Alpenglow upgrade enabling transaction finality under 100 milliseconds, attracting high-frequency trading firms and algorithmic traders [5][6] - The transition to the Votor consensus protocol has further reduced settlement latency, making sub-100ms finality achievable in practice [6] Impact of Stablecoin Inflows - Significant inflows of stablecoins, such as over $5.5 billion in USDC minted directly on Solana in one month, have created a "permanent bid" for on-chain trading, allowing traders to save an estimated 0.10–1% per trade compared to centralized venues [7]

Risk Management - Bybit will gradually introduce a new insurance fund mechanism to manage high volatility and reduce ADL triggers [1] - New USDT perpetual contracts will first enter a dedicated insurance fund of at least $8 million before moving into a shared, composite fund based on risk and liquidity [1] - The new system raises the average loss-absorption capacity per trading pair by over 200% compared with the previous single-pair model [1]

Core Insights - The 2025 Web3 Security Report by CertiK indicates that losses from hacking, scams, and vulnerabilities are projected to reach approximately $3.35 billion, an increase from $2.446 billion in 2024 [1] - Excluding the significant Bybit incident, which accounted for about $1.447 billion, the overall amount of stolen funds is lower than the previous year, highlighting a trend of "decreasing event numbers but increasing single-event loss sizes" [1] - Supply chain attacks have resulted in the highest monetary losses, while phishing attacks have the highest number of incidents; Ethereum remains the blockchain with the most concentrated security events [1]

MARKETS: Bybit announces it will discontinue services for residents of Japan.Starting in 2026 Japanese users will gradually have their accounts restricted. ...

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]

Core Viewpoint - Bybit has announced a phased exit from the Japanese market starting in 2026, opting to withdraw rather than continue to confront Japanese regulatory authorities [1] Regulatory Environment - The Japanese Financial Services Agency (FSA) has been pursuing Bybit for "unlicensed operations" since 2021, leading to increased scrutiny [1] - In 2023, the FSA requested Apple and Google to remove Bybit's related apps from their platforms [1] Operational Changes - Bybit will begin to restrict accounts of Japanese residents starting in 2026, with a deadline of January 22, 2026, for users to submit any necessary materials in case of misclassification [1]

Regulatory Compliance - Bybit will gradually exit the Japanese market starting in 2026 due to regulatory disputes with Japan's Financial Services Agency [1] - Japan's Financial Services Agency has been pursuing Bybit over unlicensed operations since 2021 [1] - Apple and Google were required to remove Bybit's app this year [1] User Account Restrictions - Accounts held by Japanese residents will face phased restrictions from 2026 [1] - Users mistakenly flagged must submit additional documentation by January 22, 2026 [1]

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