Japan's Financial Services Agency (FSA) has issued an official warning to five offshore cryptocurrency exchanges for operating without proper registration.
The exchanges mentioned are KuCoin, BitCastle LLC, Bybit Fintech Limited, MEXC Global, and BitGate Limited.
Japan's Financial Regulator Issues Stern Warning to Unregistered Cryptocurrency Trading Platforms
This is not the first time that most of these exchanges have been warned. As BeInCrypto reported in April 2023, the FSA issued registration warnings to MEXC Global, Bybit, and BitGate. It appears that these exchanges have yet to comply.
Japanese law requires that any platform offering cryptocurrency trading services within the country must register with the FSA and the Ministry of Finance.
Japanese law requires that any platform offering cryptocurrency trading services within the country must register with the FSA and the Ministry of Finance.
However, these exchanges are alleged to have provided services to Japanese users without obtaining the required authorization. Unregistered platforms fall outside the scope of FSA regulatory oversight, raising concerns about the safety of client funds.
The agency recently reduced the capital gains tax rate from 55% to 20%, in line with stock market tax policies. These measures are aimed at stimulating the local digital market, which has shown signs of recovery throughout 2024.
Also, publicly listed Japanese company Metaplaent announced yesterday that it is looking to raise $62 million to fund the purchase of Bitcoin. The company is expanding its Bitcoin-focused strategy, much like MicroStrategy in the United States.
In a separate development, Japanese authorities have arrested 26-year-old Yuta Kobayashi, who is accused of leading a group involved in laundering 100 million yen ($663,000) through Monero and other channels.
However, officials did not disclose the methods used to track the Monero transactions. The arrest highlights ongoing efforts to combat cryptocurrency-related financial crimes in Japan.