From Bybit to people living in Japan

[Oshosondy]

Starting from 2025, Bybit will no longer operate in Japan. The reason is because Bybit is not registered with Japan’s Financial Services Agency, which requires crypto exchanges serving Japanese users to hold local approval.

https://cointelegraph.com/news/bybit-discontinue-services-japanese-residents-citing-regulations

Bybit has halt people living in Japan to register since October.

I think Bybit need to register in all countries that are necessary. The exchange is not also registered in my country but providing crypto products and services.

[TryNinja]

I think Bybit need to register in all countries that are necessary. The exchange is not also registered in my country but providing crypto products and services.

Things always go south when an exchange/provider needs to register with each country and start asking for a shit ton of documents because of dumb laws. Bybit was a great way to avoid getting tracked by the governemnt here in Brazil (supposedly, obviously I didn't do any of that). Now they are getting cornered and the end is near.

[boyptc]

I think Bybit need to register in all countries that are necessary. The exchange is not also registered in my country but providing crypto products and services.

It's the same for other exchanges too. I think most countries now have got that idea with Binance's US penalty.

And that's why they need to apply licenses to the global exchanges that will penetrate to their local markets. Not to mention about the Japan's local exchange competition.

I have no idea about that but they're also being fair to the crypto exchanges there that are locally licensed and registered.

[bbc.reporter]

Starting from 2025, Bybit will no longer operate in Japan. The reason is because Bybit is not registered with Japan’s Financial Services Agency, which requires crypto exchanges serving Japanese users to hold local approval.

https://cointelegraph.com/news/bybit-discontinue-services-japanese-residents-citing-regulations

Bybit has halt people living in Japan to register since October.

I think Bybit need to register in all countries that are necessary. The exchange is not also registered in my country but providing crypto products and services.

This is a small and similar problem with Binance when certain jurisdictions began to strictly regulate big exchanges in the cryptospace. What will certainly happen is Bybit will apply for a license to operate their exchange on the jurisdiction of Japan and we will forget this problem.

It might take some more months before Japanese citizens can trade in Bybit again, however. But this is not a big problem, I reckon. The Japanese government only want more taxes to gather hehhee.

[Darker45]

I think it's just fair. Bybit is a private company which involves keeping the funds of the Japanese people. It's completely understandable if regulators implement strict policies. Especially because Bybit is carrying a rather seriously heavy baggage, being the victim of the largest crypto hack in history, they have to convince they're capable of protecting Japanese funds.

The country must have learned lessons from Mt. Gox. It's also Japan's strong safeguards that somehow protected its people when FTX collapsed. They definitely know the risks.  

[noorman0]

-snip-
What will certainly happen is Bybit will apply for a license to operate their exchange on the jurisdiction of Japan and we will forget this problem.

Or, bybit should simply abandon its dealings with the country,

Japan maintains one of the world's strictest crypto oversight regimes. In July, Maksym Sakharov, co-founder and CEO of decentralized onchain bank WeFi, told Cointelegraph that Japan's regulatory bottleneck is pushing innovation out of the country.

If regulations eventually become burdensome for Bybit, sacrificing some of its users based on this region would be a better option. Perhaps Bybit has also looked at user statistics before making this decision.

[JeromeTash]

That's quite terrible news for the Japanese users. Bybit used to be a safe haven for users from countries where other bigger crypto exchanges had banned them, but It looks like it has been one of those exchange that now has to either acquire the operating licenses for specific countries of cease operation. One thing for sure is that there will always be another less known exchange that users will start using more often until it's also finally recognized by authorities.

[rat03gopoh]

It looks like it has been one of those exchange that now has to either acquire the operating licenses for specific countries of cease operation.

What's not reported on Op's news is that Bybit previously received three warnings from the local Financial Services Authority: in May 2021, March 2023, and November 2024.

Bybitは過去3回（2021年5月、2023年3月、2024年11月）にわたり金融庁から警告を受けており、今年2月にはアプリストアからの削除、10月には新規登録停止と、段階的に日本市場からの撤退を進めてきた。

In conclusion, Bybit will now withdraw completely instead of pursuing an operating license.

[hugeblack]

If regulations eventually become burdensome for Bybit, sacrificing some of its users based on this region would be a better option. Perhaps Bybit has also looked at user statistics before making this decision.

It's a balancing act between the number of users, profits, and regulatory constraints. If regulations are strict but the market is huge and profitable, like the US market, companies will try to comply.

Other markets with fewer restrictions and lower profits may not seem attractive, such as those in Africa. The same applies to Japan if regulations are strict, the number of users is smaller (due to high competition or lack of interest), and profits are lower.

[God Of Thunder]

If other exchanges can register and operate their businesses in these countries, Bybit should do the same. If Japan allows Bybit to operate without registering, it would be unfair to other exchanges that registered in Japan. Since the exchange makes money from the Japanese people, they should do the paperwork and make their operation legal. I think the company doesn't want to register because of the expenses. If they have low volume from Japan, I can understand why they do not wish to register their business in Japan. They cannot spend money that they cannot get from the Japanese peoples.