Bybit Japan Service Termination: The Complete Timeline and What Happens on July 22, 2026

Bybit is winding down its services for residents of Japan. The process runs in stages that began in late 2025, and it reaches its most consequential point on July 22, 2026, when the exchange says it will force-close any positions still open. This page lays out the full timeline exactly as Bybit has described it, explains what each date actually changes for an account holder, and separates what genuinely ends on July 22 from what does not. It is an informational explainer only — not financial, legal, or tax advice.

Straight answer: are Japanese users locked out?

To take the most common worry first: yes, services for Japanese residents are ending. This is less a "ban" on individuals than a phased withdrawal from the Japan market — Bybit stopped new registrations, then restricts existing accounts of Japan residents and Japanese nationals in stages, ending with a forced close of open positions on July 22, 2026. But one thing must be clear up front: withdrawing your crypto remains possible after July 22. Your balance does not disappear that day and you are not locked out of your funds. "Can't trade" is not the same as "can't get your money out." The full sequence, in date order, follows.

The timeline at a glance

What each stage actually means

October 31, 2025 — new registrations halted

From this date, Bybit stopped accepting new account registrations from Japan residents and Japanese nationals. Existing accounts were unaffected at this point; this was the first visible step of the wind-down.

December 22, 2025 — discontinuation announced

Bybit announced that it would discontinue services for Japanese residents, describing the move as part of aligning with Japanese regulations. The reason matters for understanding everything that follows: Japan requires crypto-asset exchange operators serving residents to be registered with the Financial Services Agency (FSA), and Bybit is not on that register.

January 22, 2026 — residency verification checkpoint

On this date, users identified as Japan residents were asked to complete Identity Verification Level 2 (proof of address, sometimes written "KYC2"). This is a classification checkpoint, not an account-closure date — Bybit's notice states that the KYC2 procedure can still be carried out after January 22. Accounts were not frozen on this day; rather, users who do not complete Level 2 verification may be treated as Japan residents and fall under the restrictions that follow.

March 23, 2026, 12:00 JST — Close-Only mode

This is the stage most account holders will feel first. In Bybit's own words, the account is "restricted to 'Close-Only' mode," meaning you "will not be able to open or add new positions or use any products except Convert (with limitations) and Crypto Withdrawals."

The products that switch off at this point include:

• One-Click Buy
• Bybit Card
• P2P trading
• All Spot products
• All Derivative products
• Bybit Earn and Bybit structured products

Copy Trading and Trading Bots are also switched off automatically on the same day. The only movements still permitted are:

• Convert — restricted to crypto-to-crypto only, and only into BTC, ETH, or USDC; and
• Crypto withdrawals — moving your crypto off the platform.

In practice, from March 23 the account becomes an exit-only account: you can consolidate into BTC/ETH/USDC and withdraw, but you can no longer trade.

July 22, 2026, 12:00 JST — forced liquidation of open positions

This is the deadline that gives the wind-down its urgency. Bybit states that on this date "all remaining open positions across all products will be liquidated, and card services will be suspended."

"Open positions" here means leveraged derivative positions that are still open at the deadline. If you still hold an open perpetual or futures position at 12:00 JST on July 22, the exchange closes it for you at the prevailing market price — you do not choose the exit price or the moment. That single fact has two consequences worth understanding in advance: you lose control over the execution price, and (as the companion tax page explains) closing a position is a taxable event whether you close it yourself or it is closed for you.

What is a "forced liquidation," exactly?

A forced liquidation is when the exchange closes an open position for you, regardless of your intent. It usually happens as a margin liquidation when collateral runs short, but it also happens — as here — when a service shuts down and any positions still open at the deadline are closed in one sweep. Either way, the defining feature is the same: you do not choose the timing or the price. The position is settled at the market price at that moment, which can be worse than you expected. That is exactly why a position you want to control is one to close yourself, on your own terms, before the deadline rather than waiting for the automatic close.

What gets force-closed on July 22 — and what does not

It is important not to over-read the word "liquidation." The July 22 event closes open positions. It is not described as a seizure of your balances.

Because spot balances are holdings rather than positions, they are not force-closed. They stay in the account as crypto, and the withdrawal function that survives the deadline is how you move them out.

What happens to your funds after July 22

According to Bybit's notice, after the forced liquidation the Convert and Crypto Withdrawals functions remain available continuously, and no final "withdraw-by" deadline has been published. In other words, July 22 is a deadline for open positions, not a lock-out date for your money.

That said, the platform is being wound down for the Japan market. The sourced, factual reasons to act early rather than wait are: (1) an open position left until July 22 is closed at an uncontrolled price and time; and (2) a winding-down service is not a place to leave assets indefinitely. The step-by-step withdrawal walkthrough is covered on the companion "how to withdraw" page.

Why this is happening

Japan regulates crypto-asset exchange services through the FSA. Operators that serve Japanese residents are expected to be registered; the FSA maintains a public register of licensed operators and, separately, a public warning list of operators conducting crypto-asset exchange business without registration. Bybit's decision to end Japan services is framed as part of complying with this regulatory framework rather than continuing to serve residents from outside it.

The one date to remember

If you take a single thing from this page: July 22, 2026, 12:00 JST is when open positions are force-closed. Closing a position — by your hand or the exchange's — is a realized, taxable event in Japan, and it happens in the 2026 tax year. Withdrawals continue after that date, but positions do not.

Primary sources

The dates and quoted wording above come from Bybit's official notice "Service Changes for Japanese Residents" and are cross-checked against Japanese crypto media. Japan's regulatory framework and the tax treatment referenced here are documented by the FSA and the National Tax Agency (NTA):

• Bybit official announcement — "Service Changes for Japanese Residents"
• FSA — warning regarding unregistered operators (fsa.go.jp/ordinary/chuui/highrisk.html) and the register of licensed operators (search.fsa.go.jp)
• NTA — tax treatment of crypto assets (National Tax Agency Tax Answer No.1524)

This article is general information about a service change and is not financial, legal, or tax advice. Confirm details against Bybit's official notice, and consult a qualified professional about your own situation.