The Japanese Financial Services Agency (FSA) has issued a warning letter to foreign crypto exchanges Bybit, BitForex, MEXC Global, and Bitget, stating that they are operating in the country without proper registration.
According to the FSA, these exchanges have violated the country’s fund settlement laws by conducting crypto asset exchange business without registration. The regulator also noted that the list of unregistered traders does not necessarily indicate the current state of unregistered business.
While Japan is working on new regulations for the crypto and Web3 sectors, it has not been as strict in its crackdown on the industry as some other larger economies, such as the United States. This comes after a turbulent year for the markets in 2022, which has prompted regulators around the world to take a closer look at the crypto industry.
This is not the first time that Bybit has been warned by the FSA for operating without necessary permissions. The agency issued a formal warning letter to the exchange back in 2021. It remains to be seen what action the FSA will take against these exchanges for their current violations. However, the warning letter serves as a reminder that crypto exchanges must comply with local laws and regulations in the countries they operate in, or face potential penalties and legal consequences.
