Japan Warns Cryptocurrency Exchanges to Cease Operations Until Properly Licensed
The Japan Financial Services Agency (FSA) has issued warnings to four cryptocurrency exchanges: ByBit, BitGet, MEXC Global, and Bitforex.
The exchanges have been told to cease offering services to Japanese residents until they obtain the proper licenses.
The FSA has stated that the exchanges must register in the country before they are allowed to conduct their operations.
ByBit previously warned
This is not the first time that ByBit has been warned by the financial regulator about its operations in the country. A similar notice was issued in 2021. Regulators in the UK and Canada have also warned ByBit from operating in their respective countries without proper registration.
Japan takes cryptocurrency regulations seriously
Japan has been one of the leading countries in terms of cryptocurrency regulations. Since introducing requirements for registration and licensing for crypto exchanges in 2020, it has been cracking down on unregistered exchanges. If ByBit fails to heed the warning, it could face legal action and fines in the country.
Calls for increased regulation
Meanwhile, the country’s authorities are calling on the European Union (EU) and the United States (US) to regulate cryptocurrency the same way banks are regulated. The deputy director-general of the FSA Strategy Development and Management Bureau, Mamoru Yanase, stated that:
“Crypto has become this big. If you like to implement effective regulation, you have to do the same as you regulate and supervise traditional institutions.”
Increased scrutiny and regulation
The call for increased scrutiny and regulation follows recent collapses of cryptocurrency exchanges FTX and Terra UST. As the cryptocurrency market continues to grow and expand, it is likely that governments and regulatory bodies will increase their efforts to ensure proper licensing and regulation for all exchanges. This may involve tighter restrictions on the use and trade of cryptocurrencies.
Overall, while the cryptocurrency market may offer exciting opportunities for investors and traders, it is important to remain aware of the changing regulatory landscape and to adhere to all applicable regulations and licensing requirements.