I just discovered by accident that DMM Bitcoin (regulated bitcoin exchange in Japan) only allows withdrawals to legacy addresses.

It's been SIX years since segwit was implemented.

Get with the program exchanges!

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They won't. BTW are there any exchanges in Japan support LN withdrawals? Because we don't in S.Korea.

Exchanges are casinos that make money selling shitcoins to the gullable. They don't care about the real revolution which is Bitcoin. Look at Coinbase and Brian Armstrong. He doesn't get it. He doesn't even know what the Lightning Network is. The whole exchange thing is a doomed model anyway. The future is about earning and spending Bitcoin. Short the COIN long the corn.