Key Points
- Bybit temporarily halts new user registrations from Japan to comply with regulatory guidelines.
- Bybit secures full Virtual Asset Platform Operator permission in the UAE and partners with Thredd for expansion.
As of the end of October, leading crypto exchange Bybit has temporarily stopped new registrations from Japanese users. This is a short-term measure, in place until the exchange can meet the regulatory guidelines set by Japan’s Financial Services Agency.
Impact on Japanese Users
This decision demonstrates Bybit’s dedication to investor protection and regulatory compliance in all regions. The move affects both individual and corporate users in Japan, although current users will not be impacted.
It’s unclear how long this situation will last, especially considering the previous ban on Japanese users by Binance in 2018. Binance only recently returned to Japan via a full acquisition of local exchange Sakura Exchange BitCoin. It’s worth noting that Japanese authorities have been increasing their focus on crypto operations.
The Financial Services Agency of Japan is particularly interested in foreign crypto exchanges operating within its jurisdiction without registration. As a result, it has implemented rules such as the 2024 amendment to the Financial Instruments and Exchange Act, which has increased regulations on crypto derivatives trading and imposed stricter penalties on unregistered operators.
Bybit’s Regulatory Compliance and Expansion
In line with its commitment to regulatory compliance, Bybit has received a license in the UAE, making it the first crypto exchange to secure full Virtual Asset Platform Operator permission in the country. The license was issued by the Securities and Commodities Authority. According to Ben Zhou, Bybit’s CEO and co-founder, this approval is “a testament to Bybit’s unwavering commitment to building trust through compliance and transparency.”
In addition to securing regulatory approvals, Bybit has also formed strategic partnerships for its expansion. Around the same time it announced the temporary halt to new user registrations in Japan, Bybit also secured a deal with Thredd. The partnership aims to scale multi-currency crypto-linked debit card programs across key global markets. The deal will utilize Thredd’s infrastructure for Bybit card issuance, wallet tokenization, localized BIN issuance, and real-time card control features.
