Japan warns of Bybit, MEXC, Bitforex, and Bitget
Japan’s Financial Services Agency (FSA) issued a warning to four cryptocurrency exchanges – Bybit, MEXC Global, Bitforex, and Bitget – to cease offering services to Japanese residents.
The FSA is taking measures to regulate crypto exchanges in Japan and has notified these platforms that they must register themselves as cryptocurrency exchanges to continue operations.
Bybit has received a similar warning from Japan’s financial watchdog two years ago for allegedly operating without the necessary registration. At the time, the regulator said the world’s fourth largest crypto exchange is allowing Japanese residents to register and leverage the platform, despite not having the proper registration to offer such services in the country.
Japan has been one of the most forward-thinking countries in terms of cryptocurrency regulation. Since the early days of Bitcoin, the nation has been at the forefront of the digital assets adoption and has implemented a number of regulations to ensure the safety and security of consumers and investors.
The history of cryptocurrency regulation in Japan dates back to 2014, when the government first recognized Bitcoin as a legal form of payment. In 2016, the country’s financial watchdog began requiring all cryptocurrency exchanges to register their business and adhere to strict anti-money laundering (AML) and know-your-customer (KYC) requirements. The FSA also began requiring exchanges to store customer funds in offline wallets to protect against hacks and theft.
In 2017, a law recognizing all cryptocurrencies as legal property was passed and obliged exchanges to comply with additional regulations, such as regular financial audits and ensuring the proper handling of customer funds. This law was a response to the high-profile collapse of the Mt. Gox exchange in 2014, which had been based in Japan.
In 2018, Japan further tightened its cryptocurrency regulations, requiring all exchanges to be licensed by the FSA and imposing stricter AML/KYC requirements. Japan also became the first country to establish a self-regulatory organization for the cryptocurrency industry, called the Japan Virtual Currency Exchange Association (JVCEA). The JVCEA is responsible for overseeing exchanges and setting industry standards.
Overall, Japan’s cryptocurrency regulations have been praised for their balance between consumer protection and industry growth. While the regulations have been strict, they have also provided a clear framework for businesses to operate in.
However, there have also been criticisms of Japan’s cryptocurrency regulations. Some argue that the regulations have been too strict, making it difficult for smaller exchanges to compete with larger ones. Others argue that the regulations have stifled innovation, making it difficult for businesses to experiment with new uses for blockchain technology.
