Japan's financial authorities have intensified their crypto regulation by taking action against unregistered exchanges. The goal is to protect investors through strict regulations.
App Store Application Removal
On February 6, 2024, Apple removed five unregistered crypto exchange apps from its App Store at the request of Japan's Financial Services Agency (FSA). The affected platforms included Bybit, Bitget, MEXC, KuCoin, and Bitcastle. This action followed multiple cautions from the FSA, urging these platforms to comply with local regulations or exit the market. Additionally, a Nikkei report on February 7 revealed that the FSA formally requested Apple to restrict access to these apps for Japanese users.
Focus on Investor Protection
Unlike other countries where the removal of exchanges could signal a ban, Japan is focused on investor protection. The FSA clarified that its measures are not aimed at restricting crypto investments but at enforcing transparent regulations. Reports revealed that in November 2024, these five exchanges were operating in Japan without the necessary registration, providing services without FSA or local financial bureau authorization.
Reasons for Stricter Rules
Opinions vary on the reasons behind Japan's stricter measures, but one key factor is the recent classification of digital assets similar to traditional financial assets. This signals Japan's commitment to the long-term integration of crypto. Some reports suggest users who already downloaded the apps can continue using them, as the removal affects only future downloads. Additionally, last year, Japan's FSA proposed tax reforms in response to growing demands from the crypto industry for a more favorable tax environment.
Japanese authorities continue to strengthen their regulatory stance on digital assets, emphasizing the importance of investor protection and fair conditions for all operating companies in the country.
