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.
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.