Key Takeaways: Bitget will terminate services for Japanese residents by Dec. 31, 2026, after Japan's FSA flagged the exchange as unregistered. Existing users have until Nov. 1, 2026, to complete Level 2 identity verification or face phased restrictions. The exit follows Bybit's withdrawal and leaves KuCoin and MEXC facing similar FSA enforcement pressure.
Bitget is winding down services for Japanese residents by Dec. 31, 2026, after Japan's Financial Services Agency flagged the Seychelles-registered exchange for operating without registration.
Bitget will terminate services for Japanese residents by Dec. 31, 2026, after Japan's Financial Services Agency flagged the Seychelles-registered exchange for operating without registration under the Payment Services Act. The exchange stopped accepting new registrations from Japan immediately, according to a notice published Aug. 3.
The phased exit follows a "comprehensive review of Japanese regulations," Bitget said in the notice. Japan's FSA warned Bitget alongside Bybit, KuCoin and MEXC in November 2024, then asked Apple and Google to remove their apps from the App Store and Google Play Store in February 2025. Bybit withdrew from the Japanese market in response, setting a precedent Bitget now follows.
Existing users have until Nov. 1, 2026, to complete Level 2 identity verification, including proof of address, to demonstrate they are not Japan-based. Those who fail will be classified as Japanese residents and face phased account restrictions, with open positions automatically closed by Dec. 31, 2026. Bitget said it will send account-specific withdrawal instructions by email. The exchange reported more than 100 million users globally across Bitget and Bitget Wallet as of 2024, though it has not disclosed how many were in Japan.
The exit leaves Japanese traders with fewer offshore venues and reinforces the FSA's registration regime, which requires any crypto-asset service provider serving domestic users to register under the Payment Services Act. Bitget's app was already removed from Japan's App Store, though existing users retained access through web and Android platforms.
Bitget also faces scrutiny in South Korea, where it lacks a Virtual Asset Service Provider license and is not registered with the country's Financial Intelligence Unit. Regulators there have been active in cracking down on unlicensed platforms, raising the prospect of similar action.
For the crypto industry, the episode shows that licensing is becoming a competitive advantage in mature markets. Exchanges that proactively register with regulators are better positioned to retain users, while those operating in a gray area face forced exits that disrupt their customer base. Japan's clear regulatory framework offers a stable environment for compliant players but leaves little room for offshore platforms.
The broader trend points to continued consolidation: as regulators in Japan and South Korea tighten enforcement, offshore exchanges must weigh the cost of local compliance against the revenue from each market. For Bitget, the decision to exit rather than register suggests the compliance burden outweighed the Japanese user base. Other unregistered platforms, including KuCoin and MEXC, face the same calculation as the FSA's enforcement campaign continues.
This article is for informational purposes only and does not constitute investment advice.
