The Financial Services Administration of Japan has issued a warning to Bybit and three other cryptocurrency exchanges about their registration process. The exchanges in question have been required to conform with Japanese regulatory requirements and to stop providing services to Japanese residents.
Japan’s Financial Services Administration’s Order
According to the Financial Services Administration of Japan, Bybit, the fourth-largest cryptocurrency exchange in the world by volume, has been operating there without being registered. Additionally, it is claimed that the aforementioned exchange has been offering cryptocurrency futures trading services in violation of local laws and regulations.
It’s also important to note that the regulator issued a similar warning to Bybit in May 2021. The alert has also been sent to MEXC Global, Bitforex, and Bitget in addition to Bybit. The Financial Services Administration’s most recent action can be linked to the country’s recent crackdown on unregistered cryptocurrency exchanges. Crypto exchanges must register with the agency and receive a license to operate in Japan, according to the new legislation that the relevant regulatory body released back in 2020.
Bitcoin exchanges that disobeyed the Financial Services Administration’s new restrictions would be liable to fines and judicial prosecution. Bybit, a Singapore-based cryptocurrency exchange firm, has not yet made an official remark on the warning.
The warning from the Financial Services Administration is said to be a sign of increased regulatory monitoring of the cryptocurrency market in Japan and other nations. Regulators are growing more worried about the hazards posed by uncontrolled cryptocurrency exchanges, including fraud, money laundering, and market manipulation. This is also important to note.
Japan’s Journey on Regulating Crypto
The gradual process of crypto regulation in Japan is one of the country’s most remarkable developments. According to reports, the nation has requested that the US and EU regulate banks that operate similarly to cryptocurrencies. The country’s officials believe that the cryptocurrency industry is large enough to require examination on par with that of banks.
The new stablecoin bill, which is about to take effect, is one of the most important developments in terms of the country’s regulation of cryptocurrencies. It’s also important to note that the Progmat Coin, a yen-backed stablecoin aimed at expediting settlement procedures, is currently being developed by Japan’s banks.
Bybit as the Apple of the Eye of Regulators
Bybit has had difficulties with regulators before; Canadian authorities have already issued warnings to the company. Along with these cautions, the respective exchange has also dealt with the market downturn of 2022, which has pushed it to downsize its employment by 30%. The regulators’ most recent concerns could bring about more adjustments to the exchange, which for the time being seemed unaffected.