Japanese regulator flags unregistered exchanges, highlighting risks for users.
Japan FSA Identifies Unregistered Crypto Exchanges
Japan’s Financial Services Agency (FSA) has issued warning letters to five cryptocurrency exchanges—Bitcastle LLC, Bitget Limited, Bybit Fintech Limited, Kucoin, and MEXC Global. The regulator accuses these platforms of targeting Japanese residents without proper registration.
The FSA stated that unregistered exchanges lack oversight, leaving customer assets potentially unprotected. Users of these platforms may face challenges in disputes and are not eligible for compensation under Japanese law.
Unregistered Platforms Pose Asset Risks
Crypto exchanges operating in Japan must register with the FSA or a financial bureau. Without registration, the FSA cannot confirm the segregation of customer assets or ensure compliance with local regulations. This situation exposes users to significant risks, including loss of funds.
Global Crackdown on Unlicensed Crypto Exchanges
Japan joins other nations like France and Hong Kong in targeting unregistered exchanges. Recently, French regulators urged caution, and Hong Kong’s Securities and Futures Commission warned of legal action against illegal operators.
Japan’s Web3 Aspirations Amid Tightened Regulations
While cracking down on unregistered entities, Japan is also positioning itself as a Web3 leader. Democratic Party for the People leader Yuichiro Tamaki has advocated for tax reforms, proposing a 20% separate tax on crypto assets to boost the sector.
No Responses Yet from Flagged Exchanges
As of now, none of the five exchanges have issued official responses to the FSA’s warnings.
Disclaimer:
The information provided on 13Desk is for informational purposes only and should not be considered financial advice. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies carries risks, and you should only invest what you can afford to lose. 13Desk is not responsible for any financial losses incurred from your investment activities.
