Japan to take strict regulation on crypto exchanges, Japan Crypto Exchange Regulation requests Apple and Google to block access to unregistered crypto exchanges. Accepting the request, Apple has removed unregistered crypto exchanges from the Apple Store, while Google has not responded to the request yet.
Japan’s Finacial Service Agency has requested tech tycoons, Apple and Google, to block the downloads of five unregistered crypto exchanges, highlighting the country’s strict approach to regulatory compliance. The five crypto exchanges to be affected by this request are Dubai-based Bybit Fintech, Singapore-based MEXC Global, Seychelles-based KuCoin, Singapore-based Bitget, and LBank Exchange. In response, Apple has removed these apps from the Appstore, the company’s app marketplace, making them unavailable for Japanese users to download. However, there is no update from Google on whether it follow suit.
Compared to other Asian countries, Japan showed a cautious approach toward cryptocurrencies pointing to the risk of volatility and security associated with crypto. Though the regulatory move to block unregistered crypto exchanges indicates the country’s rigid strategy to prevent retail crypto investment, many Japanese industry experts deny this. According to them, Japan is putting a boundary to the crypto market, by abiding by the rules and regulations of the country, traders can invest in crypto and make trades. Japan protects its consumers and prioritizes market integrity, thus their crypto policies and regulations are more strict and bigoted than other countries.
According to Japan’s Payment Service Act, every crypto exchange providing service in the country must register with FSA, the country’s financial service agency to operate legally in Japan. The request for blocking the unregistered crypto exchanges is not an ‘all of a sudden’ act, the FSA has repeatedly issued warnings to these exchanges to cease their operation in the country. However, the exchanges continued their service, leading to such strict action.
The removal of these apps is a direct consequence of the failure to abide by the Japanese crypto regulations and also a warning for other crypto exchanges operating in the country to comply with the law. Japan began following stringent policies on crypto after the Mt.Gox hack in 2014, resulting in a loss of over 850,000 Bitcoin. The strict laws aim to protect citizens from such hacks and frauds.
Japan and Its Approach Towards Crypto
Japan is one of the countries that has the most rigorous Japan crypto exchange regulation. The country follows a strict approach towards crypto followed by the popular crypto scams that occurred in the country, resulting in huge money loss for its citizens. To abide by consumer protection and maintain integrity, Japan made a strict crypto regulation that all the citizens and the crypto exchanges operating in the country have to follow.
To provide its service in the country, crypto exchanges must register their platform with FSA. The registered exchanges must keep an account of customer funds separately from the company assets. The platform should follow a strict security standard, which shud be in comply with the necessities of FSA. To monitor the functioning of the exchanges, FSA conducts periodic audits, the quality of exchanges is evaluated, and necessary actions are taken if required.
FSA’s recent request to block crypto exchanges highlights Japan’s commitment to enforce smooth crypto transactions, necessitating the need for crypto exchanges to maintain their standard of operation in the country. More than the country’s request many are keen to know how the tech companies enforce regulatory demands of government in their platform.