Which Bybit services face restrictions?

TLDR

Bybit will begin phasing out services for Japanese residents in 2026, applying gradual account restrictions to comply with Japans rules, and has not specified exactly which services will be limited yet (report).

1. Timeline: phased restrictions start in 2026 with direct notices to affected users (report).
2. Specific services are not listed; the exchange says more details will follow to Japanese users (report).
3. New registrations in Japan were already halted earlier, signalling a controlled pullback (update).

Deep Dive

1. Scope in Japan

Bybit states it will restrict access for Japanese residents beginning in 2026, with phased account restrictions rather than an immediate shutdown. The company has not publicly enumerated which services will be curtailed and says impacted users will be contacted directly with next steps (report).

• Media coverage confirms the intent to scale back access, while leaving service-level details to future notices (update).
• Earlier actions include halting new registrations, indicating a gradual withdrawal from the Japanese market (update).

2. What Users Should Do

Accounts identified as Japanese residents will face rolling restrictions; users who believe they were misclassified are asked to complete additional identity checks. Some reports note a Level 2 identity verification deadline to contest residency classification (report).

1. Review residency status and complete requested KYC steps by the stated deadlines.
2. Follow exchange emails for timing and feature-level guidance.
3. Plan for portfolio transitions if trading or funding access is limited.

3. Why This Is Happening

Japans Financial Services Agency requires exchanges serving local users to be registered and meet strict standards on customer protection, asset segregation, and AML. Unregistered platforms face enforcement or exit pressures (overview).

• Authorities have previously asked Apple and Google to remove unregistered exchange apps, reinforcing licensing-first access for local users (update).

Conclusion

Bybits restrictions target Japanese-resident accounts, with service-level details to be communicated directly and a phased rollout beginning in 2026. The driver is Japans strict licensing regime, and the practical implication is to verify residency status and prepare for potential limitations on trading or funding features as notices arrive.