Four foreign crypto exchanges, including Bybit, BitForex, MEXC Global, and Bitget, have been accused by Japan’s Financial Services Agency (FSA) of operating in the country without proper registration. The FSA warned the exchanges that they were in violation of the country’s fund settlement laws, stating that they were conducting crypto asset exchange business without registration.
Although Japan is working on new regulations for the crypto industry, the country has not cracked down on the industry as hard as some other larger economies. Bybit, which is based in Singapore, has previously received a warning from the FSA for operating without necessary permissions in 2021.
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Growing regulatory scrutiny on the cryptocurrency industry in Japan The FSA’s warning to Bybit and three other exchanges follows a recent crackdown on unregistered crypto exchanges in Japan. In 2020, the FSA introduced new regulations requiring crypto exchanges to register with the agency and obtain a license to operate in Japan.
Crypto exchanges that do not comply with the FSA’s regulations may face fines and legal action. Regulators are increasingly concerned about the risks posed by unregulated cryptocurrency exchanges, such as fraud, money laundering, and market manipulation. As a result, regulatory scrutiny on the cryptocurrency industry is growing not only in Japan but also in other countries.
