TL;DR
- Bybit stops onboarding new clients in Japan starting October 31.
- The move responds to a proactive adaptation to the new FSA regulation.
- Meanwhile, the FSA is evaluating allowing traditional banks to hold Bitcoin.
Bybit is pausing registration in Japan for new users starting October 31. The cryptocurrency exchange, recognized as the second-largest in the world by trading volume, recently announced this key regulatory measure.
This strategic decision comes as the platform seeks to align with new emerging regulations from the country’s Financial Services Agency (FSA).
In a statement issued on Wednesday, the company described the suspension as part of its “proactive approach” to comply with Japan’s regulatory framework for digital assets. “It has always been Bybit’s commitment to operate responsibly and in compliance with local laws and regulatory expectations,” the exchange stated.
It is important to note that existing Japanese customers will not be affected by this measure at this time. All current services for them will remain operational. Bybit has indicated it will share further updates as discussions with regulators progress.
Japan’s FSA explores crypto holdings in banks
The news from Bybit coincides with a significant movement within the FSA itself. Last week, it was reported that the agency is considering regulatory reforms that could allow banks to acquire and hold cryptocurrencies, including Bitcoin.
This proposal, which will be reviewed soon at a Financial Services Council meeting, aims to align digital assets with traditional instruments like stocks and government bonds.
The FSA is expected to design a framework that addresses the risks inherent in cryptocurrency volatility. This will likely require banks to meet new capital and risk-management standards before they can hold digital assets on their balance sheets. If approved, this move could open the door for much broader institutional adoption within Japan’s regulated banking sector.
The regulatory context in Japan remains complex. In July, Maksym Sakharov, CEO of the decentralized bank WeFi, told that regulatory bottlenecks, rather than taxes, have been the real reason crypto innovation has been leaving the country.
The decision that Bybit is pausing registrations in Japan is a clear indicator of how global exchanges are responding to this evolving regulatory environment.
