Japan’s Financial Services Agency (FSA) has issued a warning to four foreign cryptocurrency exchanges for operating in the country without proper registration. The FSA identified Bybit, BitForex, MEXC Global, and Bitget as violators of the country’s fund settlement laws in a notice published on Friday.
The regulator stated the exchanges were conducting crypto asset exchange business without registration, a violation of Japanese laws. However, the FSA added that the list of unregistered traders “does not necessarily indicate the current state of unregistered business.” While Japan is currently working on new regulations for the crypto and Web3 sectors, it has not taken a hardline approach to the industry as some larger economies have, such as the United States, despite the market turbulence of 2022.
While the country’s Financial Services Agency (FSA) did issue a warning letter to Bybit in 2021 for operating without the necessary permissions, the industry has not faced a significant crackdown. Despite the upcoming regulations, it seems that Japan remains open to the potential benefits of the crypto and Web3 sectors.
