Innovative cryptocurrency exchange OKX may leave the Japanese market as OKX Exchange products are banned by local law, according to news portal Coiprost.
A screenshot from the OKX app shows a message that OKX Exchange products cannot be used in Japan due to existing regulations and rules. This potential withdrawal could be linked to the Financial Services Agency of Japan (FSA) and its tight control over the crypto sector in Japan.
Japan's financial system is not opposed to the crypto industry in general. However, the authorities seek full oversight of the sector and are only willing to cooperate with local companies.
In June, the government adopted stricter measures to combat money laundering using digital currencies. A notable addition was the "moving rule", which allows cryptocurrency transactions to be monitored. Any financial institution is required to provide information to the governing body when a transaction exceeds $3,000.
Stablecoins were recognised as digital money in Japan in 2022, and only authorised banks are allowed to issue them. Moreover, Japan's National Tax Agency (NTA) recently revised the law on cryptocurrency taxation. Companies that issue tokens will not have to pay a 30% tax on unrealised profits.
