Japan FSA flags Binance, Bybit, others for operating without registration

A Japanese Financial Services Agency (FSA) warning letter released on Friday said a number of foreign cryptocurrency exchanges, including Binance, Bybit, MEXC Global and Bitget, are operating in the country without proper registration. It said it violated the country’s fund settlement. law.

according to caveat In a letter, the Financial Services Agency said the listed exchange violated Japan’s money settlement regulations by conducting crypto asset exchange business without proper registration. The regulator has clarified that the current list of unregistered traders may not accurately represent the current state of unregistered businesses.

The FSA’s action follows a crackdown on unregistered cryptocurrency exchanges in the East Asian country. In 2020, the FSA introduced new regulations requiring cryptocurrency exchanges to register with his FSA and obtain a license to operate in Japan.

Binance’s warning from the Financial Services Agency shows that the cryptocurrency industry in Japan and elsewhere faces tougher regulation. Risks associated with unregulated cryptocurrency exchanges, such as fraud, money laundering and market manipulation, are increasingly troubling regulators.

Japan is grappling with new regulations in the cryptocurrency and Web3 sectors, but has not cracked down on the industry as hard as other big countries such as the United States.

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Cryptocurrency exchange Binance and its founder Zhao Changpeng were recently sued by the U.S. Commodity Futures Trading Commission for regulatory violations.

The FSA has also issued a formal warning letter to Binance for operating without the necessary permits in 2021.

Cointelegraph reached out to Binance, Bybit and MEXC for comment on the warning issued by Japan’s Financial Services Agency, but did not receive a response at the time of publication.

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