Bybit in the Crosshairs of Regulators: Japan’s Focus on Crypto Regulation Continues
Japan's Financial Services Agency (FSA) has recently taken steps to regulate the country's cryptocurrency exchanges.
As part of this effort, the FSA warned four exchanges, including Bybit, for operating without proper registration. The notice requires these exchanges to register as cryptocurrency exchanges to continue their operations.
Bybit, in particular, has received similar warnings from Japan’s FSA and the UK’s regulator in the past.
These warnings indicate Japan’s increased focus on regulating the crypto industry, as seen in recent developments such as requests for the US and EU to regulate crypto-like banks and the impending introduction of a stablecoin bill.
The bill will soon come into effect and is expected to streamline settlement processes by introducing a yen-backed stablecoin known as the Progmat Coin.
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The increased regulatory scrutiny has also affected Bybit, which has faced warnings from Canadian authorities and staff reductions due to the market slump of 2022. However, the exchange appears to be operating as usual despite regulators intensifying their watch over it.
Overall, the FSA’s warnings to unregistered exchanges like Bybit highlight the importance of complying with regulatory requirements in the cryptocurrency industry.
As the market continues to evolve, it’s likely that other regulators will also take steps to ensure that crypto exchanges operate within the bounds of established laws and regulations.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
