The Japanese Financial Services Agency (FSA) has issued a warning letter to four foreign cryptocurrency exchanges, including Bybit, for operating in the country without proper registration. The other three crypto exchanges affected are BitForex, MEXC Global, and Bitget.
According to the letter published by the regulator on Friday, March 31, 2023, the exchanges were conducting crypto asset exchange business without registration and violated the country’s fund settlement laws.
It is unclear what actions the Japanese FSA will take against the four exchanges. However, the affected crypto exchanges may face fines and legal action if they don’t comply with the regulator’s demands.
The FSA’s warning comes as the crypto industry faces increased scrutiny worldwide. Governments and regulators are zooming in on the sector, citing its potential for money laundering, fraud, and other illicit activities.
Japan recently instituted a landmark regulation on stablecoins and is currently working on new regulations for the crypto and Web3 sectors. Unlike some larger economies, such as the United States, the country has not taken a hardline approach to the industry.
With new regulations expected in the coming months, the Japanese FSA will likely be even more vigilant in monitoring crypto exchanges and traders to ensure compliance with the country’s laws.
Bybit, one of the four affected crypto exchanges, received a similar warning letter from the Japanese FSA in 2021 for operating without the necessary permissions. However, the Singapore-based exchange is yet to release an official statement on the latest FSA warning at the time of writing.
Meanwhile, Bybit recently introduced the Web3 Staking Pool feature and a new Bybit Debit Card. These new offerings demonstrate Bybit’s commitment to providing innovative services to its customers and leveraging the potential of the evolving crypto and Web3 sectors.
As the regulatory landscape for the crypto industry continues to evolve, it will be interesting to see how exchanges like Bybit navigate the changing environment and adapt to meet the needs of their users.
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