The Financial Services Agency (FSA) of Japan has issued a formal warning to five overseas crypto exchanges for operating without proper registration.
The exchanges named are KuCoin, Bitcastle LLC, Bybit Fintech Limited, MEXC Global, and Bitget Limited.
Japan’s FSA Gives a Stern Warning to Unregistered Crypto Exchanges
This isn’t the first warning for most of these crypto exchanges. As BeInCrypto reported back in April 2023, the FSA gave registration warnings to MEXC Global, Bybit, and Bitget. It seems that these exchanges have yet to comply.
Japanese law mandates that any platform offering cryptocurrency trading services within the country must register with the FSA and the Finance Department.
However, these exchanges allegedly provided services to Japanese users without securing the required authorization. Unregistered platforms fall outside the regulatory oversight of the FSA, raising concerns about the safety of customer funds.
Without registration, there are no guarantees of proper asset management or protections under Japanese law in cases of disputes or financial losses.
Additionally, customers of these platforms cannot rely on asset conservation or compensation measures typically ensured for regulated entities.
“JFSA issued warnings to Crypto-asset Exchange Service Providers that are operating crypto-asset exchange business without proper registration in violation of the Payment Services Act,” the agency wrote X (formerly Twitter).
Earlier this year, the FSA announced a review of Japan’s cryptocurrency regulations, hinting at possible reforms. Among the proposed changes are reduced capital gains taxes on cryptocurrency investments.
The agency recently lowered the capital gains tax rate from 55% to 20%, aligning with stock market tax policies. These measures aim to stimulate the domestic crypto market, which has shown signs of recovery throughout 2024.
Also, the Japanese publicly listed firm Metaplaent announced yesterday that it’s looking to raise $62 million to fund Bitcoin purchases. The firm is extending its Bitcoin-first strategy, much like MicroStrategy in the US.
In a separate development, Japanese authorities arrested Yuta Kobayashi, a 26-year-old accused of leading a group involved in laundering ¥100 million ($663,000) through Monero and other channels.
However, officials have not disclosed the methods used to trace the Monero transactions. The arrest highlights ongoing efforts to crack down on crypto-related financial crimes in Japan.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
