Japan’s Financial Services Agency (FSA) has formally requested that Apple and Google remove five unregistered crypto exchange applications from their platforms. This move reinforces Japan’s dedication to regulatory compliance and investor protection within the rapidly evolving crypto sector.
The FSA has specifically asked to suspend downloads of five digital currency exchanges (CEXs). These include Dubai-based Bybit Fintech, Singapore-based MEXC Global, LBank Exchange, Seychelles-based KuCoin, and Singapore-based Bitget.
Apple removed the applications from its App Store on Feb. 6 after receiving the request last week, preventing Japanese users from downloading them.
Japan’s approach towards crypto ETFs and regulatory reforms
Japan takes a more cautious approach to crypto regulation than other Asian markets. Meanwhile, Hong Kong has approved spot Bitcoin and Ether ETFs., Japanese regulators are still wary of crypto ETFs due to their volatility and risks. This is because they want to protect investors and transparency in the digital asset market.
The FSA’s latest move comes about 5 months after the new tax reform for 2025 was introduced. Under this reform, Japan’s financial regulators will classify digital assets as traditional financial assets, further integrating them into the regulatory framework.
Japan doesn’t avoid digital currency innovation. They just want a secure and stable market. Industry experts say these restrictions are preventative measures, not unnecessary hurdles.
Lian, a financial analyst, commented:
Japan’s regulatory framework isn’t an arbitrary hurdle; it’s a safeguard designed to protect investors from chaos, like the Mt. Gox incident.
The collapse of Mt. Gox in 2014 remains one of the main failures in crypto history. Resulting in over $9.4 billion in losses for more than 127,000 investors. Moreover, Mt. Gox has recently begun repaying creditors. By July 30, 2024, creditors had received approximately 41.5% of the total owed amount.
Japan’s firm stance on crypto regulations shows a broader commitment to financial stability and investor security. As the crypto market evolves, the nation’s regulatory approach may serve as a model for balancing innovation with responsible oversight.
