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Bybit, one of the world’s largest cryptocurrency exchanges, has announced that it will halt new account registrations for users in Japan. This move highlights the company’s effort to align with Japan’s regulatory framework. 

The suspension will take effect on October 31, 2025, at 12:00 p.m. UTC.

Aligning with Japan’s Regulatory Framework

Bybit notes that this move is part of its proactive approach to embrace local regulations and stay aligned with the evolving framework set forth by Japan’s Financial Services Agency (FSA).

“It has always been Bybit’s commitment to operate responsibly and in compliance with local laws and regulatory expectations,” it said. 

The exchange notes that this decision will allow Bybit to focus on its efforts and resources to review local regulatory requirements and evaluate the best ways to meet the standards outlined by Japanese authorities moving forward.

Bybit notes that there will be no immediate changes to the services available for existing Japanese users for now and the exchange will issue further updates if new regulatory measures are introduced in the future.

Japan Explore Major Policy Shift

This come as the FSA is exploring a major policy shift that could allow banks to buy and hold cryptocurrencies for investment purposes. The regulator is also weighing in to let banking groups obtain licenses as cryptocurrency exchange operators, which would allow them to directly provide crypto trading and custody services.

Japan Leads APAC in Crypto Growth 

Meanwhile, Japan’s crypto market is also gaining momentum.  According to a report from Chainalysis, Japan saw the strongest growth among APAC’s top five markets. On-chain activity in the country jumped 120% in the year to June 2025, compared to the previous year and outpaced other markets like Indonesia, South Korea, India, and Vietnam.

Although Japan’s market had been subdued in recent years compared to its neighbours, the latest growth comes amid several policy changes that are expected to drive steady growth in the long run.

New Rules Target Insider Trading

Japan is also planning to roll out new rules banning insider trading in cryptocurrencies, with violators facing surcharges based on how much they gain through illicit transactions.

This move is another sign of Japan’s intention to strengthen market transparency and investor protection as the crypto sector continues to expand.