Bybit, one of the largest crypto exchanges globally, will suspend onboarding new users in Japan starting tomorrow (Friday). This will impact both Japanese residents and nationals.
Aligning with Local Laws
In a press release today (Thursday), the exchange stated that the move came “as part of its proactive approach to embracing local regulations and aligning with the evolving framework set forth by Japan’s Financial Services Agency (FSA).”
However, Bybit stressed that its existing customer base in Japan will not face any “immediate changes to the services.”
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Bybit is the second-largest crypto exchange by trading volume, according to CoinMarketCap.com. In the past 24 hours, the exchange handled more than $4.6 billion in spot trading volumes and about $17.2 billion in derivatives. It is only behind Binance.
“It has always been Bybit’s commitment to operate responsibly and in compliance with local laws and regulatory expectations,” the press release noted.
“This decision will allow Bybit to focus its efforts and resources on reviewing local regulatory requirements and assessing how best to meet the standards outlined by Japanese authorities in the future,” the exchange informed.
Meanwhile, Bybit recently obtained a full crypto licence in the United Arab Emirates. It allows the exchange to operate virtual asset trading, brokerage, custody, and fiat conversion services in the country.
A Major Market for Retail Trading
Japan is a significant retail trading market. Although the country regulates financial services firms locally, many offshore brands also operate there, mostly by reverse soliciting local customers.
FinanceMagnates.com earlier reported that Capital.com has been planning to seek a Japanese licence. ThinkMarkets also acquired a local FX firm, Japan Affiliate, in 2021, while Plus500 bought a Japanese broker in 2022. However, the Japanese contracts for differences (CFDs) market is dominated by local giants like DMM, GMO Click, Gaitame, and Hirose.
This article was written by Arnab Shome at www.financemagnates.com.
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