Bybit is a virtual currency exchange that can be used by Japanese people and offers many benefits without being prohibited or illegal. However, since Japan’s Financial Services Agency is one of the most highly regulated institutions in the world, the reality is that Bybit, which operates without a license, is being watched. Will Bybit withdraw from Japan in the future?
Warning from the Financial Services Agency
Japan’s Financial Services Agency most recently issued a warning to companies such as Bybit and others for conducting campaigns aimed at Japanese investors in a May 2021 news story. 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. Bybit can be used by anyone regardless of nationality.
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 itself, called Bybit, is unregistered in Japan and has received a warning from the Financial Services Agency. But it was Bybit who was warned, not the users there. Personal use is not prohibited at this time. Although it is illegal for Bybit to provide services to Japanese residents, it is not illegal for individuals to use Bybit, and there are currently no such laws in Japan. We also have two-level high security measures and procedures in place. Since it is a large company, you can receive appropriate account protection.
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 listed as “violating the provisions of Article 63-2 of the Act on Fund Settlement.” In addition, the Financial Services Agency’s opinion is that it does not restrict Japanese users from using the service at their own risk, but it is illegal for companies to engage in solicitation. Therefore, for reference, as mentioned above, the user is not illegal.
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.
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