Japan's Financial Services Agency, FSA, ordered Apple and Google to remove five unregistered cryptocurrency exchanges from their app stores due to non-compliance with regulatory requirements.
App Removal from Stores
According to a report by Nikkei, the cryptocurrency exchanges Bybit, MEXC Global, LBank Exchange, KuCoin, and Bitget were targeted by this order. The FSA issued the warning under the Payment Services Act and publicly named the companies for failing to comply with regulatory requirements. Apple reportedly removed the apps from its Japanese App Store following repeated warnings. Meanwhile, Google has yet to take such actions. The restriction only applies to new downloads—users who have already installed the apps can continue to access them.
Japan’s Approach to Crypto Regulation
Japan applies one of the strictest regulatory frameworks for cryptocurrencies in the Asia-Pacific region. The FSA urged financial institutions to strengthen monitoring of “unlawful” transfers to crypto providers to ensure compliance with the Payment Services Act. Japan focused on enterprise participation in crypto, while South Korea leads in retail trading volume.
Achievements and Challenges in Crypto Development in Japan
Despite strong participation from major corporations such as Nomura, SBI, SMBC, Sony, and DMM in digital asset development, Japan's Web3 venture capital sector remains relatively small. Startups typically raise between $1 million and $3 million, far lower than seen in other global markets. Meanwhile, Hong Kong-based OSL Group recently acquired Japanese crypto exchange CoinBest, renaming it OSL Japan, as part of its global expansion strategy.
Japan's approach to crypto regulation is driven by a desire to ensure market safety and stability. With strict laws and enterprise involvement, the country continues to be a significant player in global crypto regulation.
