Bybit’s Strategic Pause: Navigating Japan’s Evolving Crypto Regulatory Landscape

In a proactive compliance move, Bybit—the world's second-largest cryptocurrency exchange by trading volume—has announced the suspension of new user registrations in Japan effective October 31, 2025. This decision precedes anticipated stricter regulations from Japan's Financial Services Agency (FSA), highlighting the exchange's commitment to aligning with local regulatory frameworks while maintaining service continuity for existing users. The suspension reflects broader industry trends as global crypto exchanges adapt to increasingly sophisticated regulatory environments, balancing growth with compliance in key markets like Japan.

Bybit Suspends New Accounts in Japan Ahead of Stricter Crypto Regulations

Bybit, the world's second-largest cryptocurrency exchange by trading volume, will halt new user registrations in Japan effective October 31. The move comes as Japan's Financial Services Agency (FSA) prepares to implement tighter oversight of the digital asset sector.

The exchange framed the suspension as a proactive compliance measure, stating it will allow time to align with evolving local requirements. Existing Japanese users remain unaffected for now, though further restrictions may follow.

"It has always been Bybit's commitment to operate responsibly and in compliance with local laws," the exchange said in a statement. The pause enables focus on reviewing regulatory expectations and developing compliant solutions.

Anchorage Digital Named Institutional Custodian for Bybit's Staked SOL (bbSOL)

Bybit has partnered with Anchorage Digital, a U.S. federally chartered crypto bank, to provide institutional custody for its staked solana token, bbSOL. This collaboration strengthens bbSOL's position as an institutional-grade liquid staking token (LST) within the Solana ecosystem.

The integration allows institutions and retail investors to access Solana staking rewards while maintaining liquidity. Anchorage Digital's custody solution ensures compliance and security under U.S. federal oversight, bridging the gap between traditional finance and DeFi.

Bybit has also increased withdrawal limits across VIP tiers, with top-tier clients now able to withdraw up to 60 million USDT daily. The MOVE comes as the exchange develops solutions to meet growing institutional demand for efficient liquidity management.

Garden Finance Faces Scrutiny as 25% of Funds Linked to Stolen Assets, Says ZachXBT

Garden Finance, a cross-chain platform, has come under fire after blockchain investigator ZachXBT revealed that over 25% of its historical transaction volume involved stolen funds. The disclosure follows a recent exploit draining $10.8 million from the protocol, compounding existing allegations of facilitating illicit financial flows.

The platform's troubles predate the breach. ZachXBT had previously criticized Garden for processing funds tied to major hacks, including the Bybit and Swissborg exploits, while ignoring victim refund requests. Between April and July 2025 alone, the platform allegedly generated six-figure profits from questionable transactions.

An on-chain message shows Garden's team offered the attacker a 10% white-hat bounty, though no official statement addresses the security failure or compliance concerns. The exploiter swiftly converted freezeable assets through identified ethereum and Solana addresses.