What happened?
Bybit announced it will suspend new user registrations in Japan starting October 31 as Japan’s Financial Services Agency rolls out tighter crypto oversight. The exchange called the pause a “proactive” move to ensure compliance with evolving local rules. Existing Japanese users are unchanged for now while Bybit reviews the requirements and continues talks with the FSA.
Who does this affect?
New and prospective Japanese users who wanted to open Bybit accounts will no longer be able to register from October 31. Current Bybit customers in Japan keep their services for the moment but could face changes if further restrictions follow. The decision also signals pressure on other exchanges, banks, and retail investors in Japan as regulators reshape the market.
Why does this matter?
Moves like this can shift trading volume away from international platforms and toward licensed domestic exchanges, changing liquidity patterns in Japan. If the FSA lets banks hold crypto under strict rules, institutional involvement and custody options could grow while compliance costs rise. Overall, tougher rules may reduce risky retail activity, create short-term market volatility, and accelerate consolidation and compliance-driven changes across the crypto market.