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Japan’s Financial Services Agency said the action was not about “shutting down crypto investing,” but “drawing a line in the sand” for noncompliant exchanges.
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Japan’s Financial Services Agency (FSA) asked Apple and Google to suspend downloads of five unregistered cryptocurrency exchanges, reinforcing its stance on regulatory compliance in the country.
The FSA has sought to suspend the downloads of five cryptocurrency exchanges (CEXs), including Dubai-based Bybit Fintech, Singapore-based MEXC Global, LBank Exchange, Seychelles–based KuCoin and Singapore-based Bitget.
While the FSA’s request was made in the previous week, Apple removed the applications from its App Store on Feb. 6, preventing Japanese users from downloading them, Nikkei reported on Feb. 7.
Japan has taken a more cautious approach to cryptocurrency than other Asian markets.
While Hong Kong has already approved the first spot Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs), Japanese regulators remain wary of the volatility and risks associated with crypto ETFs.
However, the regulator’s move to block downloads to unregistered crypto exchanges is not necessarily a clampdown against retail cryptocurrency investing, according to industry experts.
Related: Japan’s regulator suggests ‘stopping’ P2P transfers from fiat to crypto
If you want to “play in our market, you’ve got to play by our rules”
Anndy Lian, author and intergovernmental blockchain expert, told Cointelegraph:
“This isn’t about shutting down crypto investing. It’s about drawing a line in the sand and saying, “If you want to play in our market, you’ve got to play by our rules.” And honestly, I think that’s exactly the right move.”
“Japan has always been ahead of the curve when it comes to regulating digital assets, and this is just another example of them prioritizing consumer protection and market integrity,” Lian added.
The regulatory decision came nearly five months after the FSA released a new tax reform for 2025, which would treat crypto assets like traditional financial assets, Cointelegraph reported in September 2024.
Related: Bybit fined $1M by India’s financial regulator over compliance violations
Japan’s stringent regulatory landscape doesn’t signal a “war on crypto” but a push for investor safety and accountability, Lian said, adding:
“Japan’s regulatory framework isn’t some arbitrary hurdle; it’s a safeguard designed to protect investors from the kind of chaos we’ve seen in the past, like the Mt. Gox debacle. If these exchanges want to serve Japanese users, all they need to do is get compliant.”
Tokyo-headquartered Mt. Gox was a prominent Bitcoin exchange that collapsed in 2014 following a hack, resulting in over $9.4 billion worth of losses by over 127,000 investors.
In a significant development for the industry’s mainstream acceptance, Mt. Gox completed 41.5% of its Bitcoin distribution to creditors, who received a total of 59,000 Bitcoin, on July 30, 2024.
Magazine: Justin Sun reignites HTX feud, India reconsiders crypto hate: Asia Express
This article first appeared at Cointelegraph.com News
