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Bybit — Unregistered Overseas Crypto Asset Exchange (Japan FSA Warning 3 Times)

Confidence: Likely Updated 2026-05-19 Review by 2027-05-19 Sources 6 Machine-translated Original (JA)
#fintech#jp-foreign-exchange#fsa-warned#unlicensed#bybit
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This entry sits under exchanges index. Read it with FSA crypto-asset exchange registration system — number system / Local Finance Bureau jurisdiction / registration requirements for adjacent context and Japan Financial Regulation — Legal Framework for Tokens, Crypto Assets, and Payments for the broader system boundary.

No crypto asset exchange registration in Japan · FSA warning letters issued: 3 times total (2021-05 / 2023-03 / 2024-11) · Non-member of JVCEA · Services to Japan residents fully terminated as of end of 2026年3月

  • Brand name: Bybit
  • Official legal name: Bybit Fintech Limited
  • Incorporated: 2018年 (Singapore)
  • Headquarters: Dubai (United Arab Emirates). Headquarters relocated from Singapore to Dubai in 2022年.
  • Shareholders and capital: Private unlisted company. Details of ownership structure not publicly disclosed.
  • Founder: Ben Zhou (Singaporean entrepreneur). Continues to lead the company as CEO.

2. Licenses and Registration Status

  • Japan crypto asset exchange registration: None (unregistered)
  • Japan FSA warning letters: 3 letters issued in total (see §6 for details)
  • JVCEA membership: Non-member
  • UAE (VARA): Operating under the supervision of Dubai’s Virtual Assets Regulatory Authority (VARA). Following the 2022年 relocation, UAE serves as the primary regulatory jurisdiction.
  • India (FIU-IND): Completed registration with India’s Financial Intelligence Unit (FIU-IND) in 2025年2月. Simultaneously paid a penalty of 9.27 crore rupees (approximately 1.1 億円) for prior unregistered operations.
  • Other regulators: Temporarily suspended services to UK residents following the FCA’s crypto asset derivatives ban issued in 2021年. Records of warnings and restrictions exist across multiple jurisdictions including Europe and Canada.

3. Supported Assets

  • Globally handles several hundred or more crypto assets. Competitive advantage built on wide coverage of mid- and small-cap altcoins in addition to major coins such as BTC and ETH.
  • The latest official figure for number of listed assets cannot be confirmed from public sources.
  • Native token: BIT (related to BitDAO / Mantle). Conducted BitDAO token TGE in 2021年, developing governance and DeFi through that ecosystem.
  • Information on assets available to Japan residents has been inaccessible since 2026年3月 following the company’s termination of Japan-facing services.

4. Business Scope

  • Spot trading: Spot buying and selling of various crypto assets
  • Derivatives: Perpetual swaps, futures, and options. Bybit has strong capabilities in derivatives and grew rapidly as a global derivatives exchange.
  • Copy trading: Service that automatically replicates other traders’ strategies
  • Crypto lending (Earn): Service for depositing crypto assets to earn yield
  • NFT marketplace: Operated as Bybit NFT
  • Web3 wallet: Provides a non-custodial wallet
  • Fiat on-ramp channels: Credit card and bank transfer (limited to supported regions)

5. Market Share and Trading Volume

  • Ranked among the top global exchanges; Bloomberg reported it as the world’s 2位 largest by derivatives trading volume as of 2024年6月 (see 2024-06 Bloomberg articles).
  • Services to Japan residents terminated at end of 2026年3月; specific Japan market share figures not disclosed.
  • Customer base: Primarily global retail. Institutional services (OTC, custody, etc.) also offered.
  • Served as sponsor of Formula 1 Oracle Red Bull Racing from 2021年 (2022 through 2024年 seasons), enhancing global brand recognition. The sponsorship was terminated by mutual agreement at the end of the 2024年 season.

6. History and Significant Events

PeriodEvent
2018Ben Zhou incorporates Bybit Fintech Limited in Singapore. Exchange launched with a focus on derivatives
2021-05FSA Warning No. 1: FSA issues warning letter to Bybit Fintech Limited (then in Singapore) for “conducting unregistered crypto asset exchange business with Japan residents.” Provision of Japanese-language services and aggressive marketing identified as the issues
2021-08Sponsorship agreement concluded with Ukrainian esports organisation Natus Vincere (NAVI)
2022Headquarters relocated from Singapore to Dubai (UAE)
2022Sponsorship contract with Formula 1 Oracle Red Bull Racing signed (3 years, reported value 1億5,000万 USD)
2023-03FSA Warning No. 2: FSA issues warning letters to 4社 including Bybit, MEXC, Bitget, and Bitforex. Bybit receives its 2th warning
2023-11FTX bankruptcy estate files approximately 10億 USD lawsuit against Bybit’s investment arm Mirana, claiming Mirana made preferential asset withdrawals on the eve of FTX’s collapse
2024-10Bybit settles lawsuit with FTX with payment of 2億2,800万 USD
2024-11-28FSA Warning No. 3: FSA simultaneously issues warning letters to 5社 including KuCoin, bitcastle, Bybit Fintech Limited (location: Dubai), MEXC Global, and Bitget. Bybit’s 3th cumulative warning
2025-02Hack of approximately 15億 USD (largest in history): Bybit’s multisig wallet attacked on 2025年2月21日. Approximately 40万 ETH (then worth approximately 1.4–1.5億 USD) drained, setting the record for the largest loss in crypto exchange history. Attackers exploited Safe{Wallet} infrastructure provided by a third party. Arkham Intelligence, Elliptic, and the US FBI concluded that the North Korean hacker group “Lazarus Group / TraderTraitor” was responsible. Bybit secured approximately 44.7万 ETH from Galaxy Digital, FalconX, Wintermute and others within 72 hours, restoring reserves
2025-02India FIU-IND registration completed; penalty payment made (Rs 9.27 crore)
2025-02Removed from Japan App Store and Google Play: At FSA’s request, apps of MEXC, Bybit, Bitfinex, KuCoin, and Bitget removed from and made unsearchable on Japan’s Apple App Store and Google Play
2025-10-31New registrations from Japan residents suspended: Bybit stops accepting new account applications from Japan residents as of 2025年10月31日
2025-12Formally announces phased termination of services to Japan residents
2026-01Transitions Japan resident positions to “close-only” mode. End of 2026年3月 announced as final deadline

7. Strategic Developments

  • Exit from Japan market (2026-Q1): After 3 FSA warnings, fully terminated services to Japan residents at end of 2026年3月. In contrast to Binance, which established a Japan entity (Sakura Exchange BitCoin, now Binance Japan) and obtained registration in 2022年, Bybit chose not to pursue a regulatory-compliant approach to the Japan market and instead opted to cut off spot services (see FSA warning-letter issuance system for unregistered foreign crypto-asset exchanges (2018-2025) and UAE VARA Licensing Regime - Dubai's world-first independent crypto-asset regulator for background).
  • Focus on UAE and major global markets: Continuing to expand institutional investor services and derivatives with Dubai as headquarters.
  • Trust recovery after 2025年 hack: Restored reserves in a short period following approximately 1.5億 USD in losses. Announced enhanced POA (Proof of Assets) disclosure aimed at improving transparency.
  • Re-entry into India market: Completed FIU-IND registration and penalty payment in 2025年2月, transitioning to legally compliant operations under regulation. Aims to establish standing as a legitimate player in the Indian crypto asset market.

8. Key Persons

  • Ben Zhou (CEO and founder): Singaporean entrepreneur. Has led the company as CEO since founding Bybit in 2018年. Drew attention for personally addressing the situation on X (formerly Twitter) and leading a rapid response following the 2025年2月 hack.
  • Details of other key executives and investors are not included as they cannot be confirmed from public sources.

Sources