The Financial Services Agency (FSA) of Japan has adopted a strong position against unregistered digital currency exchanges operating from within the nation.
The regulatory authority has asked Google and Apple to take down five main crypto exchange apps—Bybit, KuCoin, Bitget, LBank, and MEXC—from their respective app stores in Japan, local news outlet Nikkei reported.
This action is part of the nation’s rigorous crypto regulations, which demand that every exchange catering to Japanese consumers register with the FSA.
Examining Unregistered Exchanges
The request made by the FSA emphasizes Japan’s continuous initiatives to guarantee industry compliance with cryptocurrencies. Any crypto exchange serving Japanese citizens under Japan’s Payment Services Act must first get regulatory clearance before operating in the nation. Nonetheless, the FSA says that without appropriate registration, Bybit, KuCoin, Bitget, LBank, and MEXC have kept providing services to Japanese consumers.
JAPAN’S FINANCIAL SERVICES AGENCY (FSA) CALLS FOR APPLE AND GOOGLE TO REMOVE FIVE UNREGISTERED CRYPTO EXCHANGE APPS FROM THEIR PLATFORM
– Japan’s Financial Services Agency (FSA) has formally requested that Apple and Google remove five unregistered crypto exchange applications… https://t.co/r6n01WTz5a pic.twitter.com/zwDQarDecn
— BSCN (@BSCNews) February 7, 2025
Ordering their removal from app stores, authorities hope to limit access to these platforms and stop users from interacting with transactions that fall short of Japanese regulations. Although no particular fines have been disclosed for non-compliance, the action strongly indicates that Japan takes its crypto laws seriously.
Apple Reacts, Google’s Action Unclear
Apple apparently moved quickly to eliminate the targeted crypto trading apps from its Japanese App Store after receiving the FSA’s request. Users are now seeing alerts that some apps are not accessible in their nation or region when they try to download them. Furthermore, while looking for the five exchanges in the App Store, nothing appears, discouraging new users from making an account.
However, Google’s response is still unknown. There is yet no proof that the tech behemoth has taken the apps down from the Japanese Google Play Store. If Google complies, it may further restrict Japanese consumers’ access to these exchanges, making it more difficult for them to trade crypto on unregistered sites.
Strict Crypto Rules In Japan
For bitcoin exchanges, Japan boasts some of the harshest rules among countries. Following prior security lapses and fraud cases, the government has tightened policies to guarantee user protection. Among other legal responsibilities, all licensed exchanges have to abide by rigorous anti-money laundering (AML) and know-your-customer (KYC) rules.
With this most recent action against Bybit, KuCoin, Bitget, LBank, and MEXC, Japan shows its will to eradicate non-compliant services. It also serves as a warning to other exchanges that may be operating without proper registration.
The Future Of Crypto In Japan
Although Japan is still a major center for adoption of cryptocurrencies, its legislative framework keeps becoming stricter. The most recent enforcement action by the FSA implies that the Land of the Rising Sun is not ready to accept trade that deviates from its licensing criteria.
Featured image from Gemini Imagen, chart from TradingView
