The second-largest cryptocurrency exchange by trading volume, Bybit, 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 additional communications as the restrictions are rolled out.
Japan has some of the strictest crypto regulations worldwide. Exchanges operating in the country must register with the Financial Services Agency and follow rules on client protection, asset segregation and anti-money laundering.
Platforms that do not meet these standards are typically forced to exit the market. Japan’s regulator also plans to require local cryptocurrency exchanges to maintain liability reserves to protect users from hacks and other operational failures.
The announcement comes just days after Bybit said it had returned to the UK, two years after stricter crypto marketing and promotion rules forced the exchange out of that country.
