[Bybit: Virtual currency, NFT] Is Bybit prohibited for Japanese people to use? Relationship with the Financial Services Agency Illegality and warning explanation


Bybit is one of the most popular cryptocurrency exchanges in the world. However, Japan’s Financial Services Agency is one of the most regulated institutions in the world, so Bybit, which operates without a license, is being watched. Will Bybit withdraw from Japan in the future?

Warning from the Financial Services Agency

In fact, Bybiy has received a warning from the Japanese Financial Services Agency in 2021. This is due to the fact that the crypto asset exchange business was conducted without registration with the Japanese Financial Services Agency. In order to provide crypto asset trading services for residents of Japan, it is necessary to register as a “crypto asset exchange service provider”. But Bybit did not. This is because Bybit is a Singapore company. It seems that the trigger for Bybit’s warning was a campaign aimed at Japanese investors.

Actions of the Financial Services Agency

Japan’s Financial Services Agency most recently issued a warning to Bybit in May 2021 for conducting a campaign targeting Japanese investors. After that, he issued a warning on Twitter etc. But that’s all there is to the movement. I don’t know what will happen in the future, but the current situation is that things have calmed down for now. However, be sure to check the terms and conditions of other securities companies and exchanges. Depending on your location, internet access may be prohibited or physical purchases may be restricted.

Is it illegal for Japanese to use Bybit?

The exchange called Bybit itself has received a warning from the Financial Services Agency. However, it was Bybit who got the warning, not the users there. Personal use is not prohibited at this time. Although it is illegal for Bybit to provide services to residents of Japan, it is not illegal for individuals to use Bybit, and there is currently no such law in Japan.

Sales for Japanese Residents

It would be illegal for Bybit to operate for Japanese residents. In the list of unregistered business operators created by the Financial Services Agency, it is described as “violating the provisions of Article 63-2 of the Payment Services Act.” In addition, the FSA’s view is that it does not regulate the use of Japanese users at their own risk as individuals, but it is illegal for companies to solicit.

Is it okay to withdraw money from overseas?

Bybit is a virtual currency exchange based in Dubai, but there are no particular problems for Japanese people to withdraw money from overseas in Japanese yen or US dollars. Domestic exchanges are recommended, but they have solid support information and there is no risk in using Bybit. There have been no problems in the past, so you can use it with confidence. It has a high security level authentication function, so it is safer than Binance etc. It supports two-factor authentication and has never been hacked.

Is it okay to deposit money with a credit card?

Bybit accepts payment methods such as credit cards, virtual currencies, bank transfers, and P2P, but as confirmed by the operating company’s official website, there have been no problems in the past. Please be careful about scanning the QR code or copying the wallet address incorrectly. Remittance operations can also be performed using a smartphone app.

Is there any problem with trading?

Bybit can be traded by Japanese people without any problems. There are many stocks available, and orders and payments can be made normally. It also supports spot trading and futures trading (derivatives). You can trade as usual with bitget, mexc, etc. We also have popular stocks such as Bitcoin. Maker and taker fees are also low.

Zero cut will be adopted

Even if Japanese people use the service themselves and incur losses and go bankrupt, zero cut is adopted without margin calls, ensuring safety. Even if the margin becomes negative, it will be compensated. There are also bonuses and campaigns that are available to first-time Japanese users. It has a lot of very good reviews. You can also trade by looking at charts with MT4. As it is a global exchange, countermeasures are currently in progress.

Why Bybit does not register with the Financial Services Agency

Why is Bybit not registered with the Japanese Financial Services Agency, even though it has a large number of Japanese users? This is because it has a feature of maximum leverage of 100 times. If you follow Japanese regulations, there are dozens of currencies you can handle, and the maximum leverage is doubled. If this happens, it will lose its appeal and lose the chance to attract new Japanese users. Also, Bybit is not a Japanese cryptocurrency exchange. We are a company based in Singapore.

leverage limit

Japan’s Financial Services Agency has placed significant restrictions on leverage. If the intention is reflected as it is, it will be quite difficult for users to get a large profit from a small amount of money. From the user’s point of view, the leverage limit has a considerable disadvantage, so there are aspects that the management side of Bybit cannot agree with.

Zero cut system

This is also a very important factor, but Bybit uses a zero cut system. The zero cut system means that in the unlikely event that the account balance becomes negative, the user does not have to chase the debt, and Bybit’s management side will compensate for the negative amount. In other words, the zero cut system will be a very beneficial system for users, but the Japanese Financial Services Agency does not approve it.

Headquarters is in Dubai

This goes back to the original story, but Bybit’s headquarters are not in Japan but in the UAE. Since our base of operations will be in the Middle East, there is no need to force ourselves to conform to Japan-specific rules. Since it is quite difficult to operate in accordance with the laws of all countries, Japan is only one of the business development bases.

Trends of other companies in the same industry

There are other popular virtual currency exchanges in the world besides Bybit, but it is also true that there are some that are struggling with activities in Japan.

Binance withdraws from Japan

There is no one who does not know Binance among users who trade cryptocurrencies. But the world’s most popular exchange has been warned by the Financial Services Agency. The reason was that if you want to work in Japan, you should get a virtual currency exchange license. As a result, Binance has completely withdrawn from the Japanese market. Binance’s official page also supported Japanese, but now there are almost no Japanese translations.

BitMEX withdraws from Japan

In the same industry, BitMEX, a popular exchange in the world, has also decided to withdraw from Japan. BitMEX also received the same warning as Binance. In Japan, due to the revision of the Financial Instruments and Exchange Law and the Fund Settlement Law, we decided to withdraw. From 2020, Japanese people living in Japan will not be able to open an account.

Will Bybit Withdraw?

As mentioned above, if the world’s top exchanges withdraw from Japan one after another, Bybit may also withdraw. There are also voices that Bybit will also stop services for Japanese people. For now, there is no illegality and users can trade freely, but I have no idea what will happen in the future. The possibility of Bybit’s complete withdrawal is not zero.