The Japanese government has recently announced a significant crackdown on cryptocurrency trading, issuing stern warnings to Bybit, one of the leading crypto derivatives exchanges. The Financial Services Agency (FSA) is introducing new measures to ensure that companies such as Bybit are compliant with Japanese regulations and laws.
Other Exchanges That Received Warning
In addition to Bybit, three other well-known exchanges – MEXC Global, Bitforex, and Bitget – have also been issued a stern warning from the Taiwan Financial Supervisory Commission (FSC). This is a significant development for the cryptocurrency industry, as it indicates that the FSC is taking steps to ensure proper compliance with existing regulatory requirements. It is likely that these exchanges will need to take steps to address any irregularities in order to maintain their operations in the country.
The Financial Services Agency (FSA) of Japan has recently taken action in response to the proliferation of unregistered cryptocurrency exchanges in the country. This follows a crackdown initiated by the FSA in 2020 when it announced its new regulations, requiring all cryptocurrency exchanges to register with the agency and gain a license in order to operate within Japan.
The new regulations are to help protect investors from potential fraud and money laundering activities associated with the unregulated cryptocurrency industry.
Furthermore, the FSA is requiring exchanges to strengthen their anti-money laundering protocols and to provide additional information about their operations. As a result of this increased scrutiny, Bybit must now implement significant changes to its operations in order to remain compliant with Japanese law.
