Japan’s Financial Services Agency (FSA) called for Apple and Google to remove five crypto currency exchange from the application stores. According to the authorities, these stock exchanges are among the platforms that should not operate in Japan because they do not provide the necessary regulatory compatibility.
Japan banned 5 crypto money exchanges
The crypto currency exchanges targeted by FSA were Bybit, Kucoin, Bitget, Mexc Global and LBANK Exchange. Previously, these platforms were warned to fulfill the rules of compliance. However, it is stated that none of the stock exchanges take into account these warnings.
Japan does not completely close its doors to the crypto industry. He even reviewed the crypto taxation rules last year and evaluated lower taxation options. In addition, some MPs began to support the idea of creating Bitcoin reserves, and a Bitcoin ETF in Japan is thought to be close to approval.
However, despite all these positive developments, FSA has once again revealed that it would not tolerate platforms that do not comply with legal regulations.
Controversial statement from Bybit
Despite the warnings, only Bybit made a statement among the stock exchanges that did not take any precautions. However, this statement had an approach that completely ignores the situation:
We want to clarify the latest discussions on Bybit services for our users in Japan. Bybit continues to offer service in Japanese language. We sincerely apologize for any discomfort. We are working to meet all local regulatory expectations by cooperating with the authorities.
Bybit’s statement was considered a step to calm users instead of accepting the problem.
On the other hand, as in the recent example of Deribit’s withdrawal from Russia, companies are often looking for ways to continue their activities within the framework of certain rules. Banned stock exchanges in Japan are also expected to investigate ways to provide services to users outside their country.
Crypto currency exchanges are looking for solutions in other countries
One of the most remarkable points is that these stock exchanges strive for regulatory compliance in countries other than Japan. For example:
- Bybit recently received a license from India.
- Kucoin reached an agreement with the US last month.
- Bitget is actively working to adapt to the regulations of the European Union.
However, the fact that Japan did not take any steps in spite of the warnings made months ago, led to harsh measures of the authorities. Mario Nawfal, one of the names known in the crypto world, summarized the situation on X (formerly twitter) as follows:
These platforms were quietly trade in Japan, but they did not obtain the necessary legal permissions. As a result, users remained completely unprotected. There is neither legal assurance nor regulatory supervision, literally chaos. Japan gives a clear message to the sector: If you do not follow the rules, you will endure the results.
Although it is unclear how these prohibitions will last, it is also a matter of curiosity whether the stock exchanges are willing to return to the Japan market. However, this event once again revealed how strict the crypto arrangements in Japan are.
