Bybit Suspends New User Registrations in Japan Amid Regulatory Changes
Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has announced that it will suspend new user registrations in Japan starting from October 31. This move is in response to the country’s Financial Services Agency (FSA) introducing new regulations for digital assets. According to Bybit, the decision is part of its “proactive approach” to adapt to Japan’s evolving regulatory framework.
The company stated, “It has always been Bybit’s commitment to act responsibly and comply with local laws and regulatory expectations.” Existing Japanese customers will not be affected by this change, and all current services will remain operational. Bybit will provide further updates as discussions with regulators progress.
Japan’s FSA is considering allowing banks to hold Bitcoin and operate licensed crypto exchanges, as part of its efforts to bring digital assets in line with traditional instruments such as stocks and government bonds. The proposal will be reviewed at an upcoming meeting of the Financial Services Council, with the aim of addressing the risks associated with crypto volatility and requiring banks to comply with new capital and risk management standards.
Top exchanges by market capitalization. Source: CoinMarketCap
Regulatory Environment in Japan
Last week, it was reported that the FSA is considering regulatory reforms that would allow banks to acquire and hold cryptocurrencies such as Bitcoin (BTC). The move could open the door to broader institutional acceptance in Japan’s regulated banking sector. However, some experts believe that Japan’s regulatory environment is driving crypto innovation out of the country.
Maksym Sakharov, co-founder and CEO of on-chain decentralized bank WeFi, told Cointelegraph that Japan’s regulatory bottlenecks, not taxes, are the real reason crypto innovation is leaving the country. Sakharov said that even if the proposed flat 20% tax on crypto profits is implemented, Japan’s “slow, prescriptive and risk-averse” approval culture will continue to push startups and liquidity abroad.
Impact on the Crypto Industry
The suspension of new user registrations by Bybit is a significant development in the crypto industry, highlighting the challenges faced by exchanges in navigating complex regulatory environments. As Japan’s FSA continues to evolve its regulatory framework, it remains to be seen how the industry will respond and adapt to these changes.
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