- Japan warned four exchanges, including Bybit, for dealing with Japanese clients without registration.
- The FSA also flagged Bybit in 2021 and warned Binance twice.
- Japan was among the first countries to regulate crypto on a national level.
Crypto exchanges are under increased scrutiny everywhere, and the latest challenge comes from Japan.
On Friday, Japan’s Financial Services Agency (FSA) issued a warning to four crypto exchanges; Bybit, Bitget, BitForex, and MEXC Global. According to the regulator, the firms offered crypto exchange services to Japanese customers without registration.
The FSA added the four exchanges to its list of unregistered crypto exchanges that received a warning. However, the regulator highlighted that the list “does not necessarily indicate the current state of unregistered business.”
Bybit Flagged Before, Binance Flagged Twice
This was not the first time Bybit had run afoul of the Japanese financial watchdog. The FSA already warned Bybit for offering unregistered exchange services in March 2022.
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Among the crypto exchanges that also received warnings were Binance and its affiliates. The FSA warned Binance Holdings Limited in June of 2021, listing Binance CEO Changpeng “CZ” Zhao as its representative. Binance, the largest exchange in the world, received its first warning in March 2018.
On the Flipside
- Bybit was among the top ten centralized crypto exchanges by trading volume in November 2022.
- Bitget, an exchange that also received a warning, is a popular social trading platform.
Why You Should Care
The warning highlights Japanese efforts to rein in foreign crypto exchanges that operate without registration.
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Read about Japan’s latest crypto regulations:
What Japan’s Adjusted Regulations Mean for Stablecoins
Read about the latest scandal in Binance:
EX Binance.US CEO Hires Lawyer with Ties to CFTC in Latest Lawsuit
