Bybit, the second-largest cryptocurrency exchange by trading volume, announced that it will begin restricting access to its services to 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 roll out.
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 generally forced to leave the market. The Japanese 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 announced its return to the UK, two years after stricter rules on marketing and promoting cryptocurrencies forced the exchange to leave that country.
