Japan's Financial Services Agency (FSA) has approached Apple and Google, requesting the blocking of five major cryptocurrency exchange apps due to lack of registration in the country.
Details of the Ban
Last week, the FSA requested the blocking of apps from Bybit (Dubai), MEXC Global (Singapore), LBank Exchange, KuCoin (Seychelles), and Bitget (Singapore). According to a report by Nikkei, Apple removed these apps from its App Store in Japan on February 6.
Exchanges Under Increased Scrutiny
Japan has taken a more cautious stance towards cryptocurrencies compared to other Asian economies. While Hong Kong has approved Bitcoin and Ethereum ETFs, Japanese regulators remain cautious about the risks of the crypto market. Industry experts indicate that blocking the downloads of unregistered crypto exchanges is not necessarily a crackdown on retail crypto investing.
Industry Reaction
These exchanges had previously been warned by Japan’s FSA for operating without registration. However, not all unlicensed exchanges are affected. Reports note that searches for 'crypto assets' or 'virtual currency' still show apps from Crypto.com and CoinEx. On February 6, Bybit confirmed the app's removal but assured users that those who already have it can continue using it without issues. Authorities have not made any public statements yet, but the timing is significant, coming just weeks after the FSA called for stricter internal audits and oversight of crypto exchanges.
It remains unclear what further steps Japanese regulators will take regarding cryptocurrency exchanges. This measure highlights the intensive attention the Japanese government is paying to protect its citizens from risks associated with unregistered platforms.
