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Bybit to Phase In Japan Account Restrictions Starting 2026, Sets KYC Deadline

Regulatory pressure from Japan’s FSA is forcing a phased wind-down with KYC2 checks for disputed accounts.

Overview

  • Bybit will roll out restrictions for users identified as Japanese residents beginning in 2026, opting for a phased process rather than an immediate shutdown.
  • Users who believe they were misclassified must complete Identity Verification Level 2 by January 22, 2026 or be treated as Japan-based and limited.
  • Bybit remains unregistered with Japan’s Financial Services Agency, which has issued multiple warnings over unlicensed operations in the country.
  • The move follows earlier steps including removing its app from Japanese stores in February and halting new registrations on October 31, 2025 after Japan pushed Apple and Google to block unregistered exchange apps.
  • While curbing access in Japan, Bybit is expanding elsewhere, securing a UAE virtual-asset license and reentering the U.K. under an Archax-approved promotions arrangement.