The Japanese Financial Services Agency (FSA) has issued warnings to five cryptocurrency exchanges serving users in Japan without registration.
Violations by Crypto Exchanges
Crypto exchanges KuCoin, Bybit, Bitget, MEXC Global, and Bitget Limited have violated Japanese crypto asset trading laws by providing services without approval from relevant authorities. Unregistered companies are not subject to oversight, making it impossible to verify proper segregation of customer assets.
New Legislative Initiatives by Japan's FSA
The Japanese Financial Services Agency is formulating legislation to prevent the transfer of domestic assets abroad in the event of bankruptcy by overseas crypto exchanges. The law is aimed at protecting the assets of individual investors within Japan and avoiding illegal crypto leaks.
Crypto Regulation Challenges Compared to China
Many countries face challenges in regulating cryptocurrencies. In 2021, China banned Bitcoin mining and trading, but users have found ways to bypass these restrictions, increasing money laundering risks. China plans to amend its Anti-Money Laundering measures by 2025 to improve management of the crypto ecosystem.
Japan's efforts to establish a crypto regulatory framework are aimed at investor protection and innovation development, as opposed to China's strict policies.
