Bybit Halts New Account Registrations for Users in Japan

In Brief

• Bybit halts new account sign-ups in Japan starting October 31, 2025, at 12 PM UTC
• Existing Japanese users can continue using Bybit services without immediate changes
• Move follows $1.5B hack and Japan’s tighter crypto rules under the FIEA framework

Bybit will suspend new account registrations for Japanese residents and nationals starting October 31, 2025, at 12 PM UTC. The decision aims to align its operations with Japan’s Financial Services Agency (FSA) and upcoming regulatory changes.

The company confirmed that this suspension applies only to new users, while existing users will continue to have uninterrupted access. Bybit is allocating resources to assess and meet evolving compliance requirements in Japan’s crypto regulatory landscape.

Regulatory changes follow a challenging year for the exchange

Japan’s regulatory body, the FSA, has proposed moving crypto oversight to the Financial Instruments and Exchange Act (FIEA). This reclassification of crypto assets as securities introduces stricter operational and compliance standards for exchanges.

Bybit’s move comes after a $1.5 billion hack in February 2025, linked to the Lazarus Group, that impacted the platform significantly. Following the incident, the exchange increased transparency by releasing monthly proof-of-reserve reports verified by independent auditor Hacken.

The reports confirmed that Bybit’s reserves remained fully solvent, exceeding 100% in the days following the breach. This transparency helped stabilise user confidence during one of the most severe hacks in crypto history.

Japan continues building a detailed regulatory structure through the FSA, including the proposed launch of a Crypto Assets and Innovation Division. This unit is expected to enhance monitoring and promote innovation within the fast-evolving crypto space.

Although new account creation is paused, existing Japanese users will not face service changes at this stage. Bybit stated that it will provide future updates depending on how Japan’s regulatory environment progresses.

The company’s actions follow increased scrutiny and reflect a shift toward proactive regulatory engagement. Bybit has not confirmed a return timeline but may re-enter the market under a compliant framework once rules are finalised.