Japanese financial watchdog says 4 crypto companies operating without registration

Japan’s financial regulatory body stated that Bybit, Bitget, BitForex, and MEXC Global are providing digital assets services without regulatory approval in the country. 

Japan is a tech-friendly country in the world and in the past few years Japan showed a friendly stance toward the crypto industry. Under the current regulatory system, all crypto companies must register with the government and submit annual reports. Despite a clear regulation system in the jurisdiction of this country, many crypto companies decided to quit Japanese crypto market.

Recently Japan’s Financial Services Agency (FSA) released a note against four crypto exchanges, namely Bitget, Bybit, MEXC Global, and BitForex. 

The FSA agency stated that all these crypto exchanges are collectively providing services to 21 million people in the country and all of these crypto companies are providing services without proper regulatory approval. This financial regulatory body noted ByBit crypto exchange already received a similar kind of notice from the agency in the spring of 2021. 

Reports noted that recently ByBit exchange found promoting services more focused on the Japanese crypto Investors and this was the reason why ByBit came under the attention of Japanese regulators.

Norbert Gehrke – founder of Tokyo Fintech – shared his opinion on this issued statement by the FSA agency on the unregistered crypto services.

“Such public reprimand for running an unregistered business has not occurred for a while, so one is to assume that the FSA has witnessed aggressive marketing by Bybit to Japanese investors that goes beyond the common transgressions of presenting their website in Japanese and not blocking Japanese IP addresses.”

In the last few months, it has been found that non-Japanese crypto companies decided to keep crypto services outside Japan citing unfavorable conditions for their crypto business e.g Kraken and Coinbase decided to quit Japan. 

On the other hand, Binance Exchange acquired Sakura Exchange BitCoin (SEBC) to show its strong presence in the Japanese crypto market.

Read also: Huobi exchange will help Gala games to rescue affected Gala holders of the pGala Scheme

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• Source: https://bitcoinik.com/japanese-financial-watchdog-says-4-crypto-companies-operating-without-registration/