The second-largest cryptocurrency exchange by trading volume, Bybit, announced that it will start limiting access to its services for residents of Japan next year to comply with the country’s financial regulations.
While the company has not detailed which services will be impacted, affected users will receive further information as the restrictions take effect.
Japan enforces some of the strictest crypto regulations globally. Exchanges operating within the country are required to register with the Financial Services Agency and adhere to rules regarding customer protection, asset segregation, and anti-money laundering.
Exchanges that do not meet these standards are often compelled to exit the market. The country’s regulator is also intending to mandate that local cryptocurrency exchanges maintain liability reserves to safeguard users from hacks and other operational failures.
This announcement follows shortly after Bybit revealed its return to the U.K., two years after stricter crypto marketing and promotion regulations led to its removal from that country.
