KuCoin, Bybit, Bitget, MEXC Global and LBank Exchange were blacklisted by the Japanese regulator. Some of them cooperate with regulators in other jurisdictions.
Japan Has Banned Five Stock Exchanges
Japan's Financial Services Agency (FSA) has asked Apple and Google to block five cryptocurrency exchanges in their app stores. This is reported by the Nikkei edition. Earlier BeInCrypto editors reported that the regulator warned the companies about non-compliance with registration requirements.
Of the companies mentioned by the regulator, only Bybit issued a statement:
“We want to clarify the recent discussions regarding the service to Bybit's Japanese-speaking users. The cryptocurrency exchange continues to offer services to users in Japanese. We sincerely apologize for any inconvenience and strive to work closely with the authorities to meet all local regulatory expectations,” the statement reads.
Whether the blacklisted exchanges will serve users outside of Japan is not yet known.
“These platforms have been quietly trading cryptocurrency in Japan without the right paperwork, and now their users are left without protection. No legal protection, no oversight - just chaos. Japan warns the crypto world: follow the rules or face the consequences,” Mario Naufal wrote on X (formerly Twitter).
Most of these exchanges work closely with regulators in other countries. Bybit received a license in India, while KuCoin reached an agreement with US authorities last month. Crypto exchange Bitget is implementing a strategy to comply with EU requirements.
Overall, it is unclear how long these exchanges will be banned in Japan and whether they are interested in returning.
Japan's Cryptocurrency Policy
Japan has made several steps towards the crypto industry. For example, last year, the FSA began revising tax laws. It is expected that tax rates will be reduced. In addition, politicians are discussing the possibility of creating a bitcoin reserve.
Despite the positive dynamics, the regulator cannot ignore obvious violations and promises to continue to penalize companies that do not comply with regulatory requirements.
