The Japan Financial Services Agency (FSA) recently issued a warning to four foreign cryptocurrency exchanges – Bybit, BitForex, MEXC Global, and Bitget – stating that they need to ensure legal compliance in the country.
The FSA noted that these exchanges may be violating Japanese laws, although the presence of unregistered traders on their platforms doesn’t necessarily mean they are currently operating unlawfully.
To avoid any issues, the FSA has requested that these cryptocurrency exchanges provide additional information about the nature of their services.
Despite the FSA’s regulatory approach to the cryptocurrency industry being less hostile than in other developed countries, they still keep a close eye on the market and require all cryptocurrency platforms to register.
It’s mandatory for financial institutions to adhere to global and local anti-money laundering and terrorist financing regulations, which includes using the FSA’s AML compliance software packages such as Sanction Scanner.
If crypto exchanges fail to comply with the FSA rules, they could face financial penalties and legal action against their management.
Meanwhile, the governor of the Bank of Japan, Haruhiko Kuroda, has expressed his support for the central bank digital currency (CBDC) to function alongside other payment methods, with the aim of enhancing the entire financial ecosystem of Japan.