Bybit, the second-largest cryptocurrency exchange by trading volume, said it will begin restricting access to its services for residents of Japan next year as part of an effort to comply with the country’s financial regulations.
The company did not specify which services would be affected, but said affected users will receive further communications as restrictions are implemented.
Japan has some of the strictest crypto regulations in the world. Exchanges operating in the country must register with the Financial Services Agency and follow rules on customer protection, asset segregation and anti-money laundering.
Platforms that do not meet these standards are usually forced out of the market. Japan’s regulator also plans to require local cryptocurrency exchanges to maintain liability reserves to protect users from attacks and other operational failures.
The announcement comes just days after Bybit said it had returned to the UK, two years after stricter cryptocurrency promotion and marketing rules forced the exchange out of that country.
