Bybit, one of the world’s leading cryptocurrency exchanges by trading volume, has announced it will temporarily halt new user registrations in Japan starting October 31. This move is part of its efforts to comply with recently implemented regulations by Japan’s Financial Services Agency (FSA). As the country’s regulatory landscape evolves, many crypto platforms are adjusting their operations to align with new requirements, reflecting the ongoing global shift towards more regulated and transparent crypto markets.
- Bybit will suspend new account registrations in Japan from October 31 to comply with FSA regulations.
- Existing Japanese clients will retain access to all services without interruption.
- The move highlights increasing crypto regulation efforts in Japan amid discussions on allowing banks to hold Bitcoin.
- The FSA is reviewing proposals that could enable banks to acquire and operate with digital assets like Bitcoin and Ethereum.
- Japan’s strict regulatory environment continues to influence crypto exchange strategies and may push startups offshore.
Bybit, a major player in the global cryptocurrency industry, has announced it will stop onboarding new users in Japan beginning October 31. The exchange cited the need to align with recently introduced regulations from Japan’s Financial Services Agency (FSA), reflecting a broader shift toward stricter oversight of digital assets within the country.
“It has always been Bybit’s commitment to operate responsibly and in compliance with local laws and regulatory expectations,” the company stated. Current Japanese clients will not see any immediate changes, with all existing services remaining available. Bybit has assured users it will continue to update the public as discussions with regulators develop.
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Japan’s FSA Considers Allowing Banks to Hold Bitcoin
Recently, reports emerged that the FSA is contemplating a regulatory overhaul that would permit licensed banks to acquire and hold cryptocurrencies such as Bitcoin (BTC) and Ethereum. This proposal will be examined at an upcoming meeting of Japan’s Financial Services Council, aiming to bring digital assets into closer alignment with traditional financial instruments like stocks and bonds.
The regulatory body is expected to develop a framework addressing the specific risks associated with cryptocurrency volatility, potentially requiring banks to adopt new capital and risk-management standards before engaging with digital assets. If successful, this initiative could foster increased institutional participation within Japan’s tightly regulated banking sector.
Attempts to reach Bybit for comment on this development were unsuccessful at the time of publication.
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Regulatory Environment Drives Crypto Outflow from Japan
In July, Maksym Sakharov, CEO of decentralized banking project WeFi, highlighted that strict regulations, rather than taxes, are primarily responsible for the declining crypto innovation in Japan. Despite plans for a 20% flat tax on crypto gains, he pointed out that Japan’s cautious approval process and prescriptive approach to regulation continue to discourage startups and liquidity from staying in the country.
Sakharov emphasized that even if tax policies change, Japan’s conservative risk culture and slow regulatory reforms will likely drive many crypto entrepreneurs and investors abroad, impacting the country’s competitive stance in the global blockchain ecosystem.
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