Bybit’s Perspective: Japan’s New Reserve Mandate Signals Maturing Crypto Market Infrastructure
In a landmark regulatory development, Japan's Financial Services Agency (FSA) has announced plans to mandate cryptocurrency exchanges to establish and maintain substantial reserve funds specifically for customer compensation. This initiative is a direct response to a series of high-profile security breaches that have impacted the industry. The proposed legislation, which is scheduled for formal submission to the Japanese parliament in 2026, represents a significant step toward aligning crypto exchange operations with the stringent standards of traditional finance. The reserve requirements will be modeled on existing frameworks for securities firms, with mandated amounts scaling based on an exchange's trading volume. These liability reserves are projected to range from approximately ¥2 billion ($12.7 million) up to ¥40 billion ($255 million). This move is fundamentally aimed at bolstering investor protection and fostering greater trust in the digital asset ecosystem by ensuring that platforms have dedicated capital to cover potential losses from security incidents. For global platforms like Bybit, which prioritize security and user asset protection, such regulatory advancements underscore a broader, positive trend toward institutional-grade safeguards and market maturation. The development highlights a critical evolution where regulatory clarity and consumer protection mechanisms are becoming central pillars for the sustainable growth of the cryptocurrency sector worldwide.
Japan to Mandate Crypto Exchange Reserve Funds After Major Hacks
Japan's Financial Services Agency (FSA) will require cryptocurrency exchanges to maintain reserve funds for customer compensation following high-profile security breaches. The proposed legislation, slated for parliamentary submission in 2026, aims to protect investors by mandating liability reserves modeled on securities firms—ranging from ¥2 billion to ¥40 billion ($12.7 million to $255 million) based on trading volumes.
The regulatory overhaul follows the ¥48.2 billion ($308.5 million) DMM Bitcoin hack in May 2024 and Bybit's $1.46 billion loss in February 2025. Exchanges may partially fulfill requirements through insurance, while cold wallet storage remains compulsory. The framework also introduces asset segregation rules and bankruptcy protections to expedite customer reimbursements.
This move aligns with broader efforts to reclassify crypto assets under the Financial Instruments and Exchange Act, subjecting them to insider trading restrictions. Japan's proactive stance reflects growing global scrutiny of exchange safeguards amid escalating cyber threats.
Bybit Enhances VIP Access to Wealth Management with Temporary Threshold Reduction
Bybit, the world's second-largest cryptocurrency exchange by volume, has announced a year-end exclusive for its VIP clients, slashing the minimum subscription requirement for its Private Wealth Management (PWM) program by 50% to 250,000 USDT. This strategic move aims to broaden access to institutional-grade investment strategies amid ongoing macroeconomic uncertainty.
The PWM program has demonstrated robust performance, with its top-performing fund delivering a 16.94% annualized return in October 2025. Bybit's offering combines customized portfolio design, active risk management, and exclusive access to private funds—tools increasingly sought by investors navigating volatile markets.
Market participants are prioritizing capital preservation while seeking yield-generating opportunities. Bybit's temporary threshold reduction reflects growing demand for sophisticated crypto wealth solutions as digital assets mature into mainstream finance.
Mantle and Bybit Integrate USDT0 for Seamless Cross-Chain Stablecoin Flows
Bybit, the world's second-largest cryptocurrency exchange by trading volume, has partnered with Mantle Network to support USDT0 deposits and withdrawals. This integration positions Mantle as the largest exchange-related Layer 2 network by total value locked (TVL).
USDT0, the omnichain deployment of Tether's USDT stablecoin, leverages LayerZero's OFT standard to enable unified liquidity across multiple networks. Bybit users can now deposit and withdraw USDT0 directly to and from Mantle Network, with zero-fee withdrawals available for a limited time.
The collaboration between Mantle, Bybit, and USDT0 aims to reshape cross-chain stablecoin infrastructure, offering a mint-and-burn architecture that ensures 1:1 backing and eliminates fragmented bridges.
