【Column】The Evolving Significance and Value of Cryptocurrencies Between 'Freedom' and 'Regulation'

Summary

1. Regulatory Strengthening is Not Exclusion, but a Sign of Maturity

As seen with Bybit and Binance, Japan is progressing in rectifying unregistered foreign cryptocurrency exchanges, accelerating the withdrawal of non-compliant operators. Although this may narrow market options in the short term, it indicates that cryptocurrencies are moving beyond speculative stages towards becoming part of a regulatory financial infrastructure designed for investor protection and market surveillance.

2. The Tension Between 'Free and Global Value Transfer' and 'Institutional Order' is a Fundamental Issue

The core feature of cryptocurrencies, 'free and cross-border value transfer,' is changing shape as it becomes integrated into existing financial systems. While some feel discomfort or alarm at this change, the challenge of balancing innovation with investor protection arises precisely because the market is entering a phase of genuine societal implementation.

3. Beyond Regulatory Friction, a New Value for Cryptocurrencies is Defined

Regulatory strengthening does not undermine the raison d'être of cryptocurrencies; rather, it reflects the technology's increasing integration with the real economy. Blockchain is advancing in areas such as financial infrastructure, payments, and digital asset management, transforming cryptocurrencies from 'speculative instruments' to 'platforms generating practical value.' Finding the balance between regulation and freedom, order and innovation, will be key to understanding the future of the cryptocurrency market.

By the end of 2025, Bybit, one of the world's leading cryptocurrency exchanges, officially announced the cessation of services for residents in Japan. Enhanced KYC (Know Your Customer) measures and gradual restrictions will make it practically difficult for Japanese users to access the services.

In the past, Binance also suspended services for Japanese residents, but later, Binance Japan was established as a licensed cryptocurrency exchange operator, officially offering services to Japanese residents.

If viewed positively, Bybit's recent move could also be seen as a precursor to obtaining a license in Japan.

However, the likelihood of unlicensed foreign cryptocurrency exchanges withdrawing or suspending services in Japan is expected to increase. Warnings to overseas operators serving Japanese residents are likely to become stricter.

As cryptocurrencies transition from the current Funds Settlement Law to the Financial Instruments and Exchange Law, aimed at enhancing investor protection and market surveillance, corrective measures against non-compliant foreign operators are expected to be implemented swiftly.