Offshore exchanges and Japan: who left, who was warned and what to do with your funds

Can Japan residents use offshore exchanges?

Short answer: almost none are left for you. Two things closed the door. The first is Japanese law. The Payment Services Act requires anyone who buys, sells or exchanges crypto for customers as a business to be a registered exchangeA crypto-asset exchange service provider registered with the FSA. Registration brings segregation of client assets, cold storage and strict KYC duties., and Article 63-22 bars unregistered foreign firms from soliciting people in Japan. The FSA's guidelines say an offshore firm that trades with Japan residents as a business is running an exchange business, and that ads on its website count as solicitation in principle.

The second is the exchanges' own decisions. Binance global, Bybit, OKX, Bitget and Gate have all either ended service for Japan residents or written Japan into their terms as a "restricted" or "prohibited" location. This turns on residence, not nationality. Bybit said it identified Japan residents by documents, proof of residence and IP address. If you hold a foreign passport but live in Japan, you're a Japan resident for these purposes. Telling a platform otherwise breaches its terms and is a common way to end up with frozen funds.

What about the user? The law is aimed at the unregistered operator, and as a general reading it doesn't make it a crime to be a customer. But being a customer still costs you. Japan's rules on segregating client assets, cold storage and putting client yen in trust don't reach an unregistered offshore firm. Every exit comes with trading restrictions and deadlines, the apps disappear from the Japanese store, and the planned 20% tax rate is expected to skip offshore trades entirely. The wider legal picture is in our guide to crypto regulation in Japan.

Timeline: exits and FSA warnings

Built from the FSA's warning list, the exchanges' own announcements and changes to the FSA register. Where we could only confirm something through press reports, we say so.

• Mar 2018FSA warns Binance A second warning went to Binance Holdings in June 2021.
• May 2021First FSA warning to Bybit Addressed to the operator, Bybit Fintech.
• Jan–Feb 2023Kraken and Coinbase leave Japanese retail Kraken's Japanese entity, Payward Asia, dropped off the FSA register between the end-2022 and 1 February 2023 lists. Coinbase's Japanese company is still registered but handles no assets. Exact exit dates come from press reports.
• 31 Mar 2023Warnings to Bybit, MEXC, Bitget and Bitforex
• 1 Dec 2023Binance global ends service for Japan residents Accounts that didn't migrate to Binance Japan between August and November became withdraw-only; unsupported coins were converted to BTC.
• 14 Jun 2024Warning to LBank
• 28 Nov 2024Warnings to KuCoin, Bybit, MEXC, Bitget and bitcastle The second for MEXC and Bitget, the third for Bybit.
• Feb 2025App-store removals The FSA reportedly asked Apple and Google to pull five exchange apps; Bybit's app was reportedly removed from the Japanese App Store on 6 February.
• 31 Oct 2025Bybit stops new Japanese sign-ups
• 23 Mar 2026Bybit goes close-only for Japan residents P2P included.
• 22–24 Jul 2026Bybit liquidates remaining positions and declares its Japan exit complete
• 3 Aug 2026Bitget announces its exit New Japanese sign-ups stop.
• 1 Sep 2026Warning to Izakaya Limited ("IZAKA-YA", Hong Kong)
• 1 Nov 2026, 11:00 JSTBitget goes close-only for Japan residents
• 31 Dec 2026Bitget force-closes open positions; its card ends
• By about Jul 2027Crypto moves under the Financial Instruments and Exchange Act Tougher penalties then apply to unregistered spot crypto business.

Where each offshore exchange stands

The names expats ask about most, with their FSA status. "No exit notice" doesn't mean "fine to use": without FSA registration, a firm may not serve Japan residents as a business.

HTX (formerly Huobi) isn't on the FSA warning list, and we couldn't confirm how its terms treat Japan. Its former Japanese arm is today's BitTrade, an FSA-registered exchange. For the full register of 27 firms, see our list of FSA-registered exchanges.

What happened to Bybit in Japan

Bybit was the offshore exchange of choice for many Japanese traders, and the FSA's most frequent target: three warnings under the Payment Services Act plus one under the securities law. Its app disappeared from the Japanese App Store in February 2025, it stopped new Japanese registrations on 31 October 2025, and a phased exit was reported in December. The official notice, "Service Changes for Japanese Residents", followed on 22 January 2026.

From 12:00 JST on 23 March 2026, Japan-resident accounts went close-onlyYou can close existing positions and withdraw, but you can't open new trades., and Bybit named P2P explicitly. On 22 July 2026 it liquidated whatever positions were still open, and on 24 July it posted "Completion of Japan Remediation". Japan residents can now only use Convert and withdraw. The yen ads you can still see on Bybit P2P are not open to you, and the Bybit card is no longer an option either; our crypto cards in Japan page covers what is.

Bitget's Japan exit: the two dates that matter

Bitget announced on 3 August 2026 that it would end services for Japan residents and stopped new Japanese sign-ups that day. Its terms of use, updated on 20 October 2026, list Japan as a "Prohibited Country". It had received two FSA warnings under the Payment Services Act and one under the securities law.

Two dates matter. From 1 November 2026 at 11:00 JST, Japan-resident accounts are close-only. On 31 December 2026, any open positions are force-closedThe exchange closes your position for you at the prevailing price, locking in the gain or loss. and the Bitget card stops working. Crypto withdrawals are reported to remain available after that. The notice doesn't say whether the self-custody Bitget Wallet app is affected.

A forced close books your gain or loss at whatever the market happens to be on the day. If you'd rather choose the moment, close positions yourself and start the transfer steps below before 1 November.

Binance Japan vs Binance global

"Can I use Binance in Japan?" depends on which Binance you mean.

If you had a Binance account at home and now live here, Binance Japan is the one you can use, but it is a separate account with its own KYC and its own coin list. Our Binance Japan review and PayPay guide cover the details. For Binance P2P, see our P2P guide.

FSA warning letters and the app-store removals

When the FSA finds an unregistered firm serving Japan residents, its guidelines set out the sequence: an inquiry, then a warning letterA formal FSA letter to an unregistered firm. The FSA publishes the name and can refer the case for criminal prosecution. with the firm's name published, then a criminal complaint if it carries on. The list is public on the FSA website, and the overseas section was last updated in September 2026. Bybit, MEXC and Bitget each appear more than once.

In February 2025, The Block, citing Nikkei, reported that the FSA had asked Apple and Google to stop distributing the apps of Bybit, MEXC, LBank, KuCoin and Bitget in Japan. The removal of Bybit's app from the Japanese App Store on 6 February is supported by press reports, but we found no FSA press release, and the removal dates for all five apps and Google Play's action remain unconfirmed. What is on the record is the FSA working group's report of 10 December 2025, which states the policy of asking app stores to remove apps from unregistered offshore operators.

What to do with your funds

If you still hold assets on an exchange that has left or is leaving, there is one legal route: withdraw the crypto to an FSA-registered exchange in Japan, sell it there, and withdraw yen to a bank account in your own name. After an exit, these platforms generally don't offer yen withdrawals to residents, and getting around their geo-blocks or misstating your residence breaks their terms and puts your balance at risk.

1. Read the official notice and deadlines

   Check the exchange's own website or app for the close-only date, the forced-liquidation date and how long withdrawals stay open. Ignore DMs and anyone claiming to be support.

2. Download your full history

   Export every trade, deposit, withdrawal, position close and conversion as CSV while you still have access. You need it to work out your Japanese tax.

3. Open an account at an FSA-registered exchange

   Pass KYC with your residence card or My Number card, then check in the help centre that the exchange supports your coin and network and accepts transfers from that offshore platform.

4. Send a small test transfer

   Confirm the deposit address, the network and any memo or tag, then send a small amount first. Answer the receiving exchange's questions about the sending platform truthfully.

5. Move the rest, sell and withdraw yen

   Once the test arrives, send the balance, sell it for yen on the Japanese exchange and withdraw to a bank account in your own name.

6. Work out the gain and file

   Add up gains and losses from trades, forced closes and conversions offshore and the final sale in Japan, and file a return if you made a profit.

Every transfer into a Japanese exchange runs through the Travel RuleA global rule that exchanges pass sender and recipient details along with crypto transfers. Mandatory in Japan since 1 June 2023., in force in Japan since 1 June 2023. When crypto arrives from an unregistered or overseas platform, the receiving exchange collects information about the sender, assesses the risk and may run blockchain analytics. Under the industry association's rules, it can restrict your use of the coins if something looks suspicious. Some Japanese exchanges don't accept transfers from certain offshore platforms at all, so check the receiving exchange's help page for supported sources before you send.

If you hold a token no Japanese exchange lists, you can't move it in directly. Use the offshore platform's remaining Convert function to switch into a coin your Japanese exchange supports, and remember that this conversion is itself a taxable disposal. For sending through your own wallet, see crypto wallets in Japan; for the selling and withdrawal side, how to cash out crypto in Japan. If you don't have a Japanese exchange account yet, our step-by-step account guide shows the KYC flow with a residence card.

• Bitget: decide before 1 November 2026 whether to close positions yourself or let the 31 December forced close happen
• Download your complete trade, deposit and withdrawal history while you still can
• Confirm the receiving exchange supports the coin, the network and the sending platform
• Send a small test first, then the rest
• Answer the Travel Rule questions truthfully
• Keep a record of every gain and loss for next year's tax return

Tax on offshore gains

If you are a Japan resident, gains made on an offshore exchange are taxed in Japan the same way as domestic ones: as miscellaneous incomeJapan's catch-all income category (雑所得). Crypto gains are added to salary and taxed at progressive rates., added to your salary and taxed at up to 55% including resident tax. A sale for yen isn't the only trigger. Crypto-to-crypto swaps, exit-related conversions, closing a position and a forced close all realise a gain or loss. Crypto margin trading doesn't get the separate 20% treatment that futures enjoy.

The 20% flat rate enacted in March 2026, expected from 2028 at the earliest, only applies to sales through or to registered exchanges. Offshore, DEX and P2P sales are expected to stay on progressive rates. And since January 2026, new accounts at Japanese exchanges come with a CARFThe OECD Crypto-Asset Reporting Framework. Exchanges collect your tax residence and foreign tax ID so tax authorities can exchange data. self-certification of your tax residence, part of a framework for tax authorities to exchange crypto data internationally.

Offshore histories can vanish after an exit, so export them now. The calculation is explained in our Japan crypto tax guide, and the coming changes in the 20% tax reform explainer. For anything complicated, talk to a licensed tax accountant (zeirishi).

If you just arrived in Japan, or are about to leave

Many expats arrive with an account on an offshore exchange they opened at home. Once you're resident here, the platforms above treat you as a Japan resident. The cleanest move is to bring your holdings onto a registered Japanese exchange early, using the steps above, and keep records of when and at what price you acquired each coin, because you will need a cost basis for Japanese tax. Our guide for foreigners in Japan covers opening an account with a residence card, My Number and US-person rules.

If you're leaving, your Japanese tax status for the year still depends on your residency dates, and crypto isn't on the list of assets covered by Japan's exit tax. Which platforms you can use after you genuinely move abroad depends on the rules where you then live. See moving to or leaving Japan with crypto.

Why offshore exchanges keep leaving Japan

The pressure is rising. The amendment enacted on 15 July 2026 moves crypto into the Financial Instruments and Exchange Act and toughens the response to unregistered operators. The maximum prison term rises from 3 to 10 years, the Securities and Exchange Surveillance Commission gets criminal-investigation powers, and courts can grant emergency injunctions at its request. The stricter penalties and the commission's powers took effect on 12 August 2026 for business already under the securities law. The part that moves spot crypto trading under that law takes effect by cabinet order, by about July 2027 at the latest.

The law also presumes void any contract in which an unregistered firm sells a crypto asset that no registered exchange handles. Add the app-store removals and repeated warnings, and serving Japan without a licence has become a losing proposition, which is why Bybit and Bitget have gone. The upside for residents is a broader domestic market: Binance Japan with PayPay, Mercari's Mercoin, and exchanges like OKJ and BitTrade with long coin lists. Compare their costs on our fee comparison, and read our exchange reviews.

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