Bitget, a Seychelles-registered cryptocurrency exchange known for its copy trading and futures trading services, is withdrawing from the Japanese market, according to a notice published on August 3, 2026.

The exchange has stopped accepting new registrations from users based in Japan, effective immediately. Existing users identified as potential Japanese residents have until November 1, 2026, to complete Level 2 identity verification (KYC), including proof of address, to demonstrate that they are not subject to the restriction. Users who fail to complete the verification process by the deadline will be classified as Japan-based residents.

Bitget stated that restrictions on affected accounts will be introduced in phases starting November 1, 2026. By December 31, 2026, any remaining open positions will be automatically closed. The exchange said it will provide account-specific withdrawal instructions to affected users via email.

Bitget described the decision as part of its "ongoing commitment to regulatory compliance" but did not identify a specific regulatory change or action by Japan's Financial Services Agency (FSA) that triggered the move. The official notice is available on Bitget's support page.

Regulatory Background

Japan maintains one of the most stringent cryptocurrency regulatory frameworks among major markets, with strict requirements covering licensing, custody, consumer protection, and compliance for crypto-asset service providers. The framework was significantly shaped by two major incidents: the 2014 collapse of Mt. Gox, then the world's largest Bitcoin exchange, and the January 2018 Coincheck hack, in which approximately ¥58 billion worth of NEM was stolen. Both events accelerated legislative reforms and expanded FSA oversight. Under the Payment Services Act, crypto-asset exchange service providers serving domestic users must register with the FSA, a process that involves capital requirements, cybersecurity standards, and governance audits.

Bitget was previously identified by the FSA as an unregistered foreign exchange operator. In November 2024, the FSA issued a warning to Bitget alongside five other exchanges, including KuCoin, MEXC Global, and Bybit. Following regulatory pressure, Bitget's app was removed from Japan's App Store, though existing users retained access through web and Android platforms.

User Impact and Disclosure

Bitget reported more than 100 million users globally across Bitget and Bitget Wallet as of 2024. However, the exchange has not publicly disclosed how many Japanese users it served, what percentage of its global customer base came from Japan, or how much trading volume was generated by Japanese accounts.

Broader Industry Context

Bitget's exit underscores growing friction between offshore cryptocurrency exchanges and jurisdictions with strict licensing regimes. The decision reflects a broader industry trend in which global platforms must choose between investing in local regulatory compliance or withdrawing from markets where compliance costs are considered too high. Binance, the world's largest cryptocurrency exchange by volume, took the acquisition route to enter Japan, purchasing locally licensed Sakura Exchange BitCoin in late 2022 and relaunching as Binance Japan in August 2023 after securing FSA registration. That path requires significant capital and operational investment, including segregating domestic operations and adhering to Japan's strict asset custody rules. Bitget's withdrawal suggests the exchange opted against that level of commitment for the Japanese market at this time.