Bybit and three other crypto exchanges received warnings from Japan’s Financial Services Agency (FSA) relating to the fact that they were unregistered. This is not the first time Bybit has received this warning.
Japan’s financial regulator, the Financial Services Agency, has taken steps forward to regulate crypto exchanges in the country. The regulator sent a warning to four crypto exchanges, including the popular exchange Bybit.
The notice states that the exchanges must register themselves as cryptocurrency exchanges to conduct operations. The three other exchanges in question are MEXC Global, Bitforex, and Bitget. They have all received similar warnings.
This is not the first time Bybit has received a warning from Japan’s FSA. The exchange received a warning from the regulator in May 2021, which also stated that it was operating without a license. The United Kingdom’s regulator had also raised similar issues with the exchange around that time.
The public warning of the exchange is a sign that Japan is ramping up its focus on regulation. Recent weeks have included multiple developments in this regard, as the country focuses on preventing issues leading to incidents like the crash of Terra.
Japan Focuses on Crypto Regulation
Among the developments that are taking place in Japan is the fact that the country’s authorities have been asking the U.S. and EU to regulate crypto-like banks. Officials believe that the crypto market is big enough that it warrants scrutiny comparable to that of banking institutions.
Perhaps the most significant development relating to regulating is the fact that a new stablecoin bill will soon come into effect. At the same time, banks are working on the Progmat Coin, a yen-backed stablecoin focused on streamlining settlement processes.
Bybit on the Radar of Regulators
Bybit has been on the radar of regulators for some time, having also received warnings from authorities in Canada. The exchange does not work in the United States; the exchange has suspended USD deposits for national and international customers from March 10.
The market slump of 2022 has also affected the exchange, with the company forced to reduce its staff by 30%. The fact that regulators are intensifying their watch over the exchange may force even more change, but the exchange seems to be operating as usual for now.
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