The Japanese Financial Services Agency (FSA) has issued a warning to four cryptocurrency exchanges - Bybit, MEXC, Bitget and another platform - for operating in the country without registration.
The FSA stated that these trading platforms were providing services to Japanese citizens without proper licensing, which violates Japanese law. Moreover, they also noted that by trading crypto-assets without registration with the FSA, these companies were circumventing the law. Moreover, they warned that their list of unregulated traders "does not necessarily reflect the current state of business".
The Japanese government has been active in creating laws and regulations for crypto space and Web3. Despite this, they have not taken extreme measures against the industry, unlike the US, where authorities have taken a tough approach to cryptocurrency trading platforms.
In 2021, Bybit received an official warning from the FSA for operating without proper authorisation.
U.S. regulators have recently implemented strict oversight of cryptocurrency trading platforms and have imposed large fines on some exchanges; one example is a $30 million fine for providing steaking services to U.S. customers. The world's most popular trading platform was also prosecuted by regulators because its executives allegedly offered unauthorised services to its citizens and advised them how to use VPN to change geolocation.
