Japan’s Financial Services Agency (FSA) has issued an official warning to five foreign cryptocurrency exchanges for operating without legal registration.
The exchanges named include KuCoin, Bitcastle LLC, Bybit Fintech Limited, MEXC Global and Bitget Limited.
Japan FSA’s Harsh Warning Against Unregistered Cryptocurrency Exchanges
This is not the first time these cryptocurrency exchanges have received warnings. As TinTucBitcoin reported back in April 2023, the FSA issued registration warnings to MEXC Global, Bybit, and Bitget. It seems these exchanges are still not in compliance.
Japanese law requires any platform offering cryptocurrency trading services in the country to register with the FSA and the Treasury.
However, these exchanges allegedly provided services to Japanese users without the necessary authorization. Unregistered platforms are outside the control of the FSA, raising concerns about the safety of customers’ funds.
Without registration, there is no guarantee of proper asset management or protection under Japanese law in the event of a dispute or financial loss.
Furthermore, customers of these platforms cannot rely on the wealth preservation or compensation measures that regulated entities guarantee.
“JFSA has issued a warning to Crypto Asset Exchange Service Providers operating without proper registration, in violation of the Payment Services Law,” the agency said. write on X (formerly Twitter).
Earlier this year, the FSA announced a review of cryptocurrency regulations in Japan, hinting at possible reforms. Among the proposed changes is a reduction in capital gains tax on cryptocurrency investments.
The agency recently reduced the capital gains tax rate from 55% to 20%, in line with the stock market tax policy. These measures are intended to stimulate the domestic cryptocurrency market, which has shown signs of recovery in 2024.
Furthermore, publicly listed Japanese company Metaplaent recently announced that it is looking to raise $62 million to buy Bitcoin. The company is expanding its “Bitcoin first” strategy, similar to MicroStrategy in the US.
In another development, Japanese authorities arrested Yuta Kobayashi, a 26-year-old man accused of being the leader of a group involved in laundering 100 million Yen ($663,000) through Monero and other channels.
However, officials have not revealed the methods used to track Monero transactions. The arrest highlights Japan’s ongoing efforts to crack down on cryptocurrency-related financial crimes.