Japan FSA Flags Bybit and Others for Unregistered Operations

Overview

• Japan’s FSA has flagged Bitget, Bybit, MEXC Global and Bitforex for unregistered operations.
• These exchanges are violating the nation’s fund settlement laws.
• The FSA is cracking down on crypto exchanges in Japan in order to protect against fraud, money laundering and market manipulation.

FSA Warning Letter

The Financial Services Agency (FSA) of Japan released a warning letter stating that several foreign cryptocurrency exchanges had breached fund settlement regulations by conducting crypto asset exchange business without proper registration. The current list of unregistered traders may not accurately represent the current state of unregistered businesses.

Regulatory Action

In 2020, the FSA introduced new regulations requiring crypto exchanges to register with the agency and obtain a license to operate in Japan. This indicates that the cryptocurrency industry in Japan and other nations is facing greater regulatory scrutiny due to risks associated with unregulated cryptocurrency exchanges such as fraud, money laundering and market manipulation.

Comparison To Other Nations

Japan has not cracked down on the industry as hard as some other larger economies, such as the United States. The US has taken more stringent measures when it comes to regulating cryptocurrency exchanges which could potentially result in pushing the “center of gravity” for these exchanges away from America and towards Hong Kong or other countries with less restrictive regulations.

Conclusion

The action taken by Japan’s FSA shows that cryptocurrency regulation is becoming increasingly important globally as governments strive to protect investors from potential risks associated with trading cryptocurrencies on unregulated platforms.