- The Japan Financial Services Agency (FSA) has issued a warning letter to several foreign crypto exchanges warning them that they have been conducting operations in the country without proper registration.
- Companies like Bitget, MEXC Global, Bybit Fintech, Bitforex, Binance, and others may not be licensed to operate cryptocurrencies in Japan.
- Japan is asking the United States and the European Union to regulate the crypto market in a similar way to the banking sector.
The last year the entire crypto ecosystem has seen how the main regulators in the world tighten the rules that cryptocurrency companies must follow.
In 2020, Japan introduced regulations that required all crypto exchanges that wanted to operate in the country to register with the FSA in order to obtain a license. The regulators stressed that companies that did not comply with the regulations would face fines and legal action.
It is for this reason that The Japan Financial Services Agency (FSA) has issued a warning letter targeting various foreign crypto exchanges, including Bybit and Bitget, in which it warns that they have been carrying out operations in the country without proper registration.
Stricter regulatory scrutiny for crypto companies in Japan
According to the letter, Companies like Bitget, MEXC Global, Bybit Fintech, Bitforex, Binance, and others may not be licensed to operate cryptocurrencies in Japan. It is worth mentioning that, in 2021, the Japan FSA had already issued a formal warning letter to Binance and also to Bybit precisely for not having the necessary permits.
According to CoinDesk, a Bitget representative said they will contact the FSA “for more information.” However, many of the crypto exchanges that were mentioned in the letter have yet to comment on it.
Still, the warning issued by the regulators demonstrates their commitment to reduce the risks associated with cryptocurrencies in the country, especially after crypto exchanges have exposed many weaknesses over the past year.
For a more regulated crypto market
Japan is asking the United States and the European Union to regulate the crypto market in a similar way to the banking sector. The argument is that the crypto ecosystem is currently large enough to warrant further scrutiny.
In fact, at the end of March, the UK government presented its plan to intensify the regulation of cryptocurrencies from 2023 to 2026.
“As challenging as it is, effective regulation of crypto assets benefits everyone, including consumers and businesses.”, noted the UK.
According to many regulators and experts, an appropriate regulatory framework has the capacity to potential the evolution and innovation of the crypto ecosystem. Especially because it reduces the risks, as well as the levels of uncertainty that slow down development.
Most likely, crypto exchanges, and any company in the sector, will have to work hard over the next few years to comply with the regulations imposed by countries. Those that manage to adapt will be the ones that survive.
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