Japan Cracks Down on Unlicensed Crypto Exchanges, Targets App Stores

In a significant move to tighten its grip on the cryptocurrency industry, Japan’s Financial Services Agency (FSA) has demanded that Google and Apple remove five unregistered crypto exchange apps from their respective app stores. The targeted exchanges include Bybit, KuCoin, Bitget, LBank, and MEXC, all of which have been operating in Japan without proper registration.

This decisive action by the FSA underscores Japan’s commitment to enforcing strict regulations on crypto exchanges serving Japanese consumers. Under the nation’s Payment Services Act, any exchange catering to Japanese users must obtain regulatory approval before commencing operations. However, the five exchanges in question have continued to provide services without appropriate registration, prompting the FSA to intervene.

The implications of this crackdown are far-reaching for both the exchanges and Japanese crypto enthusiasts. By ordering the removal of these apps from app stores, authorities aim to limit access to non-compliant platforms and prevent users from engaging in transactions that fall short of Japanese standards. While no specific penalties have been announced for non-compliance, the FSA’s stance sends a clear message that Japan takes its crypto regulations seriously.

Apple has swiftly responded to the FSA’s request, removing the targeted crypto trading apps from its Japanese App Store. Users attempting to download these apps are now met with notifications stating that they are unavailable in their country or region. Moreover, searches for the five exchanges within the App Store yield no results, effectively deterring new users from creating accounts.

Google’s response, on the other hand, remains uncertain. As of now, there is no evidence to suggest that the tech giant has taken similar action to remove the apps from the Japanese Google Play Store. Should Google follow suit, it would further restrict Japanese users’ access to these exchanges, making it increasingly difficult for them to trade crypto on unregistered platforms.

Japan’s stringent crypto regulations are among the most comprehensive in the world. In the wake of previous security breaches and fraud cases, the government has tightened its policies to ensure user protection. Licensed exchanges are required to adhere to strict anti-money laundering (AML) and know-your-customer (KYC) rules, among other legal obligations.

The FSA’s recent action against Bybit, KuCoin, Bitget, LBank, and MEXC demonstrates Japan’s resolve to eliminate non-compliant services and serves as a warning to other exchanges operating without proper registration. As Japan continues to be a major hub for cryptocurrency adoption, its regulatory landscape is becoming increasingly stringent, with the FSA showing no tolerance for exchanges that fail to meet its licensing requirements.

The crackdown on unlicensed exchanges is likely to have a significant impact on the Japanese crypto market. Users who have been trading on these platforms may be forced to switch to licensed exchanges, potentially leading to a consolidation of the market. Additionally, the increased regulatory scrutiny could deter new entrants from launching unregistered exchanges in Japan, further strengthening the position of compliant platforms.

For Japanese crypto traders, this development serves as a reminder of the importance of using licensed exchanges. By opting for registered platforms, users can ensure that their funds are protected and that they are operating within the bounds of the law. As the regulatory landscape continues to evolve, it is crucial for traders to stay informed and adapt to the changing requirements.

Tags: Japan, Crypto Regulations, Unlicensed Exchanges, FSA, App Stores

Source: https://bitcoinist.com/japan-to-google-and-apple-get-rid-of-unlicensed-crypto-apps/