On Friday, Japan’s Financial Services Agency (FSA) released a warning letter stating that several foreign cryptocurrency exchanges were conducting business in the country without proper registration. The exchanges mentioned include Binance, Bybit, MEXC Global, and Bitget.
According to the FSA, these exchanges have violated Japan’s fund settlement laws by conducting crypto asset exchange business without registering appropriately. The FSA clarified that the listed exchanges were not the only unregistered traders and that there may be more unregistered businesses in the country.
The FSA’s recent warning to Binance and other foreign cryptocurrency exchanges is part of a more significant effort to crack down on unregistered exchanges in Japan. The FSA implemented new regulations in 2020 requiring crypto exchanges to obtain a license and register with the agency to operate in Japan.
The warning to Binance highlights the increased regulatory scrutiny faced by the cryptocurrency industry not only in Japan but also in other countries. Regulators are becoming increasingly concerned about the risks associated with unregulated exchanges, such as fraud, money laundering, and market manipulation.
Despite Japan’s efforts to develop new regulations for the crypto and Web3 sectors, the country has not implemented as strict crackdowns on the industry compared to larger economies like the United States.
Recently, Binance, a famous crypto exchange firm, and its founder Changpeng Zhao were sued by the US Commodity Futures Trading Commission (CFTC) for violating US regulations. In 2021, Japan’s Financial Services Agency (FSA) also issued a warning letter to Binance for operating without the necessary permissions.
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