Cryptocurrency exchange Bybit has been ordered to comply with Japan’s regulatory requirements and cease offering services to Japanese residents, after Japan’s Financial Services Agency (FSA) on March 31 issued a warning letter to the company over its registration process.
See related article: Bybit suspends U.S. dollar bank transfers, possible link to Silvergate shuttering crypto banking network
Fast facts
- The FSA has stated that Bybit, the world’s fourth largest crypto exchange by volume, is operating without registration in Japan and has been engaging in crypto derivatives trading services that violate the country’s laws and regulations. Bybit also received a similar warning from the regulator in May 2021.
- Along with Bybit, three other exchanges – MEXC Global, Bitforex, and Bitget – also received the warning letter.
- The FSA’s action follows a recent crackdown on unregistered crypto exchanges in the east Asian nation. In 2020, the FSA introduced new regulations requiring crypto exchanges to register with the agency and obtain a license to operate in Japan.
- Crypto exchanges that do not comply with the FSA’s regulations may face fines and legal action. Bybit, which is based in Singapore, has not yet released an official statement on the FSA’s warning.
- The FSA’s warning to Bybit highlights the growing regulatory scrutiny of the cryptocurrency industry in Japan and other countries. Regulators are increasingly concerned about the risks posed by unregulated cryptocurrency exchanges, such as fraud, money laundering, and market manipulation.
See related article: Crypto exchange Bybit to cut 30% of staff to ‘navigate market slowdown’