Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has announced it will suspend new user registrations in Japan starting October 31 amid evolving regulations from the Japanese Financial Services Agency (FSA). This strategic pause aims to ensure full compliance with the nation’s emerging digital asset framework. The exchange emphasized its commitment to responsible operation within legal bounds and stated that current Japanese users will continue to have access to all services. Further updates will be shared as discussions with regulators progress.
This development occurs alongside the FSA’s consideration of reforms to permit banks to hold cryptocurrencies like Bitcoin and operate licensed crypto exchanges. If approved, the reforms could integrate digital assets into Japan’s established financial systems, requiring banks to meet new capital and risk management standards. Such changes have the potential to broaden institutional engagement in Japan’s crypto sector.
Industry voices note that Japan’s stringent regulatory environment has been driving crypto innovation and liquidity outside the country despite relatively moderate tax proposals. Bybit’s decision reflects a wider trend of exchanges and startups adapting to a cautious and evolving regulatory landscape.
For more details, visit: https://cointelegraph.com/news/bybit-pauses-new-user-registrations-japan-fsa-regulations