Japan FSA Warns KuCoin, Bybit, Bitget, and Others Over Unregistered Operations

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As a researcher with years of experience in the complex world of cryptocurrencies and their regulatory landscape, I find myself constantly amazed at the dance between innovation and regulation that defines this industry. The latest move by Japan’s Financial Services Agency (FSA) is yet another reminder of the importance of adhering to local regulations when operating in a jurisdiction.

The Japanese Financial Services Agency (FSA) has officially cautioned five international cryptocurrency exchanges for conducting business without the necessary licensing.

The following platforms have been mentioned: KuCoin, Bitcastle LLC, Bybit Technologies Limited, MEXC Global, and Bitget Ltd.

Japan’s FSA Gives a Stern Warning to Unregistered Crypto Exchanges

It appears that many cryptocurrency exchanges, such as MEXC Global, Bybit, and Bitget, have not heeded previous warnings issued by the FSA in April 2023. According to BeInCrypto’s report, they received registration warnings at that time.

In simple terms, it’s compulsory for any platform providing crypto trading within Japan to get registered with the Financial Services Agency (FSA) and the Finance Department.

Instead, these transactions are claimed to have offered services to Japanese customers without obtaining the necessary approval first. Since unlicensed entities operate beyond the purview of the Financial Services Agency (FSA), there are worries regarding the protection of client assets.

If you don’t register your assets in Japan, there’s no assurance that they will be managed effectively or that you’ll receive legal protection in the event of disagreements or financial setbacks, as stipulated by Japanese law.

Moreover, users of these platforms do not have the assurance of protection or preservation mechanisms that are usually provided for institutions under regulation.

The Financial Services Agency cautioned unregistered Cryptocurrency Exchange Service Providers, who have been conducting crypto-asset trading activities contrary to the Payment Services Act. This warning was conveyed to platform X (previously known as Twitter),” the agency stated.

Back in the early days of this year, I learned that the Financial Services Agency (FSA) of Japan had planned a comprehensive review of our nation’s crypto regulations. This announcement came with whispers of potential reforms, which got me pretty excited as a crypto investor! One of the suggested adjustments is to lower the capital gains taxes associated with crypto investments – a move that could significantly benefit us in the long run if implemented.

The agency recently lowered the capital gains tax rate from 55% to 20%, aligning with stock market tax policies. These measures aim to stimulate the domestic crypto market, which has shown signs of recovery throughout 2024.

Moreover, Metaplaent, a Japanese company listed on the public stock exchange, declared its intention to collect approximately $62 million for the purpose of purchasing Bitcoins. Similar to MicroStrategy in the United States, this move signifies an expansion of their Bitcoin-centric approach.

As a crypto enthusiast, I recently learned about the arrest of Yuta Kobayashi, a 26-year-old individual, by Japanese authorities. He is reportedly the leader of a group suspected of laundering approximately ¥100 million ($663,000) using Monero and other means.

As a crypto investor, I’ve noticed that authorities in Japan haven’t shared details about how they tracked the Monero transactions leading to an arrest. This incident underscores their persistent work to combat financial crimes linked to cryptocurrencies within their jurisdiction.

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2024-11-29 21:19