Catenaa, Wednesday, November 05, 2025-Cryptocurrency exchange Bybit will suspend new user registrations in Japan started October 31 as the Financial Services Agency (FSA) prepares tighter oversight of the local crypto sector.
The pause applies only to new accounts, with existing Japanese users unaffected for now. Bybit said the move is part of its effort to comply with evolving regulatory requirements and to assess how best to meet the standards set by Japanese authorities.
Japan’s FSA is proposing sweeping reforms, including reclassifying crypto as a financial product under the Financial Instruments and Exchange Act, enabling penalties for insider trading and market manipulation.
The agency is also considering allowing banks to hold cryptocurrencies under strict capital and risk management requirements.
The new regulations aim to strengthen investor protection and prevent losses similar to global exchange collapses, including FTX.
Japan’s crypto market has grown rapidly, with more than 12 million accounts and deposits exceeding ¥5 trillion ($34 billion) as of February 2025. Retail investors dominate the market, though most hold relatively small balances.
Bybit said it will continue discussions with the FSA and provide updates as regulatory guidance evolves. The exchange emphasized its commitment to responsible operations and thanked customers for their understanding.
