Bybit, the second-largest cryptocurrency exchange by trading volume, said it will begin restricting Japanese residents from using its services next year as part of compliance with the country’s financial regulations.
The company did not specify which services would be affected but said affected users would receive further communications as restrictions are rolled out.
Japan has some of the strictest cryptocurrency regulations in the world. Exchanges operating in the country must register with the Financial Services Authority and adhere to customer protection, asset segregation and anti-money laundering rules.
Platforms that fail to meet these standards are often forced out of the market. Japanese regulators also plan to require local cryptocurrency exchanges to maintain liability reserves to protect users from hackers and other operational failures.
The news comes just days after Bybit said it had returned to the UK, where stricter rules on cryptocurrency marketing and promotions forced the exchange to exit two years ago.
