Keisuke Kimura Answer in brief
On August 3, 2026, Bitget announced that it would end services for residents of Japan through a phased series of account restrictions. The announcement followed Bybit’s completion of remediation measures for Japanese residents on July 22.
The change does not mean that every unregistered offshore exchange has disappeared from Japan. It does, however, mean that several of the major offshore platforms Japanese users relied on are no longer practical alternatives to licensed domestic exchanges.
For global digital asset firms, the larger message is that Japan can no longer be approached as a simple localization market. Accessing Japanese customers now requires a locally accountable strategy covering regulation, product scope, partnerships, brand development and customer acquisition.
The change: Bitget has stopped new registrations from Japanese residents and plans to place affected accounts into close-only mode from November 1, followed by the closure of remaining open positions after December 31.
The wider shift: Bybit has already completed its Japan remediation, while Binance previously moved Japanese residents from its global platform to a registered domestic operation.
The business implication: Global firms must decide how they will assume responsibility in Japan—not merely how they will make a global product accessible in Japanese.
What Bitget and Bybit announced
Bitget announced on August 3 that it would end services for users residing in Japan and apply restrictions in stages. It stopped accepting new registrations from Japanese residents on the announcement date.
From November 1, accounts identified as belonging to Japanese residents are scheduled to move into close-only mode. Users will not be able to open new positions or begin using investment products. After December 31, remaining open positions are scheduled to be closed by the platform. Crypto withdrawals are expected to remain available.
Bybit stated that it completed all remediation measures for Japanese residents as of July 22. It continues to offer crypto and fiat withdrawals, together with limited crypto conversion into BTC, ETH or USDC.
These are company announcements about restrictions applied to residents, not statements that all access from a Japanese IP address has been universally blocked. Residence determinations can involve account information, know-your-customer records and proof of address.
How Japan reached this point
Japan has required businesses providing crypto-asset exchange services to residents of Japan to register with the Financial Services Agency or a local finance bureau. The FSA’s published list of unregistered operators records warnings involving Binance, Bybit, Bitget, MEXC and other platforms.
For years, those warnings did not always remove the services from practical use. An overseas operator without a Japanese corporate presence could continue providing access through a website or app, leaving a gap between the formal regulatory position and the services users could reach.
Binance took a different route. In 2022, it acquired Sakura Exchange BitCoin, an operator that already held a Japanese registration. Binance Japan launched in 2023, and Japanese residents subsequently lost access to the global platform. The current FSA registration list identifies Binance Japan as a registered crypto-asset exchange service provider.
Many users then moved to offshore platforms offering a broader range of tokens, derivatives and yield-related products. Bybit and Bitget became important practical alternatives. Their restrictions therefore affect the market differently from a warning issued against a platform with limited Japanese usage.
Timeline
2018–2024: The FSA publishes warnings involving major offshore exchanges serving residents of Japan without registration.
2022: Binance acquires registered Japanese operator Sakura Exchange BitCoin.
2023: Binance Japan launches; Japanese residents transition away from the global platform.
February 2025: Bitget confirms that its app has been removed from Apple’s Japanese App Store, while saying at the time that existing installations, browser access and Google Play remain available.
July 22, 2026: Bybit completes its remediation measures for Japanese residents.
August 3, 2026: Bitget stops new Japanese-resident registrations and announces its phased exit schedule.
During 2027: Implementation of the amended financial markets framework for crypto assets is expected, subject to the applicable commencement provisions and implementing rules.
Why this is different from the earlier warning cycle
The most important change is not a single enforcement action. It is the combination of several mechanisms.
First, the FSA has repeatedly identified operators that it determined were providing services to Japanese residents without registration. Second, app distribution has become a practical control point. In Bitget’s February 2025 notice, the company acknowledged the removal of its app from Apple’s Japanese App Store, even though other access routes remained open at that time.
Third, exchanges are increasingly applying their own residence-based account restrictions. These controls can operate at the customer-account level rather than relying only on public warnings or website blocking.
Together, regulatory notices, app-distribution measures, residence verification and exchange-level restrictions have made the Japanese framework more effective in practice. Bybit and Bitget have moved beyond partial restrictions to remediation or withdrawal.
What this does not mean
It does not mean that every unregistered exchange has ceased operating or that no offshore service can be accessed from Japan.
It also does not establish a statistical market-share conclusion. Wakyodo’s assessment is narrower: based on our observation of the industry, the major offshore exchanges that Japanese users commonly relied on as their primary alternatives have largely disappeared as practical options.
Nor does it mean that users can replace centralized exchanges with decentralized finance without taking on new risks. DeFi requires users to manage private keys, assess smart-contract and liquidity risks, understand bridge and protocol dependencies, and determine their own tax treatment. It changes who carries the risk; it does not remove the risk.
Why local obligations matter
Licensed Japanese exchanges face costs and obligations that unregistered offshore platforms may not bear. These include domestic supervision, customer-asset protection, compliance systems and restrictions on the products they can offer.
The difference became visible after the collapse of the global FTX group. FTX Japan customers were protected by segregation requirements and measures requiring assets to be held domestically. According to a May 28, 2025 meeting of the House of Representatives Committee on Financial Affairs, customers had withdrawn approximately JPY 5.5 billion in fiat currency and JPY 22.5 billion in crypto assets by April 25, 2025.
This does not prove that stronger regulation produces only benefits. Japanese users may have access to fewer tokens and trading functions. But it demonstrates the purpose of requiring a locally supervised entity and domestic asset-protection arrangements.
There is also a competition issue. If licensed operators bear the expense of compliance while unregistered operators target the same customers with a broader product range, compliant firms face a structural disadvantage. Reducing that gap supports a fairer operating environment.
What Japan’s amended law changes
On July 15, 2026, Japan enacted amendments that move the regulation of crypto-asset trading into the Financial Instruments and Exchange Act framework. The FSA’s legislation page records the law’s passage, while FSA explanatory materials describe the planned enforcement framework.
The materials include an increase in the maximum custodial sentence applicable to unregistered business from three years to ten years, the addition of investigative powers, access to emergency court injunctions, and civil-effect provisions for certain sales by unregistered operators.
The exact commencement date and detailed implementation must be distinguished from enactment. The crypto-related framework is expected to be implemented during 2027, but companies should confirm the applicable commencement provisions and secondary rules before making a legal determination.
The strategic direction is nevertheless clear: the regulatory risk of serving Japanese residents without registration is increasing.
What global firms should do next
A global firm should treat Japan as an independent market-entry project rather than a language-localization exercise.
Acquisition: Buying a registered operator can provide an established regulatory vehicle, but it requires due diligence on the license, systems, governance, liabilities and post-acquisition integration.
Partnership with a registered operator: A partnership can reduce the need to build every regulated function internally, but product control, economics, responsibilities and customer ownership must be clearly allocated.
B2B technology or liquidity provision: Firms may provide infrastructure, technology or liquidity to registered Japanese businesses rather than directly serving retail customers. The regulatory perimeter and outsourcing requirements still need to be assessed.
Phased entry with a limited product: A narrower initial offering can reduce complexity and allow the company to test market demand. The trade-off is a smaller addressable market and the risk of entering without sufficient differentiation.
Whichever route is considered, the design should cover regulation, product eligibility, partners, brand positioning and customer acquisition as one integrated strategy. Waiting until after a service has been built is too late to resolve these questions efficiently.
What to watch next
Bitget implementation: Whether the company changes its schedule, withdrawal arrangements or residence-verification process before November 1 and December 31.
Remaining offshore platforms: Whether other major exchanges introduce similar restrictions for Japanese residents.
Implementing rules: The detailed regulations and commencement provisions for Japan’s amended Financial Instruments and Exchange Act framework.
Domestic product development: Whether registered Japanese exchanges receive greater flexibility to offer products that users previously sought offshore.
Market-entry transactions: Whether more global firms pursue acquisitions, partnerships or B2B models instead of direct cross-border access.
Frequently asked questions
Has Bitget completely stopped serving Japanese residents?
Not immediately. The restrictions are phased. New registrations have stopped, close-only mode is scheduled from November 1, and remaining open positions are scheduled to be closed after December 31. Crypto withdrawals are expected to continue.
Are all offshore crypto exchanges unavailable in Japan?
No. Unregistered operators remain, and technical access is not the same as regulatory authorization. The narrower conclusion is that several major platforms widely used by Japanese customers are no longer practical options.
Does DeFi provide a simple alternative?
No. DeFi removes some centralized intermediaries but places greater responsibility on users for custody, protocol assessment, liquidity and tax treatment.
Does the amended law already apply in full?
No. Enactment and implementation are different stages. The law passed on July 15, 2026, while the relevant crypto framework is expected to be implemented during 2027. Applicable commencement provisions and implementing rules must still be checked.
Considering a Japan market move?
Wakyodo helps global digital asset firms understand the market, identify potential partners and determine an executable entry approach. Contact Wakyodo to discuss your Japan priorities.
This content is for general informational purposes only and does not constitute legal, tax, investment or financial advice.