Registration Issue: Japan’s FSA Warns Bybit And 3 Crypto Exchanges
The cryptocurrency industry has been growing rapidly in recent years, and with this growth has come increased attention from regulators worldwide. Japan’s Financial Services Agency (FSA) recently warned four crypto exchanges, including Bybit, to register as crypto exchanges to continue operating legally.
This notification comes after earlier scrutiny of crypto exchanges from the United States and Canadian regulatory bodies.
Japan FSA Warns 4 Crypto Exchanges For Non-Compliance
Japan’s financial regulator has warned four crypto exchanges, including Bybit, over their lack of proper registration regarding their services. The popular exchange has received such a notification before.
The FSA is implementing regulations to ensure crypto exchanges in the country are compliant with relevant laws. The other three exchanges notified are Bitget, MEXC Global, and Bitforex.
According to Japan’s financial watchdog, all four must register as cryptocurrency exchanges to continue their operations. Bybit, alerted by Japan’s Financial Services Agency (FSA) in May 2021, was again addressed by the regulator due to operating without a license.
The UK’s regulator also questioned the exchange in the same timeframe.
Japanese Government Taking Stronger Stance On Crypto Regulation
The Japanese authorities are taking a more stringent stance on regulation, with several developments occurring in recent weeks, intending to avoid a situation similar to the Terra crash. The latest warning to Bybit indicates this increasingly relentless focus.
The Japanese government has requested that the US and EU intervene in overseeing crypto-like banks. They believe the digital currency sector has grown to a point where it needs supervision like traditional banks.
Meanwhile, a new bill is ready to be enforced regarding stablecoin. Banking establishments are launching the Progmat Coin, a yen-pegged stablecoin intended to make payment services more efficient.
This latest warning from the FSA shows that the regulator is paying close attention to the operations of crypto exchanges and is taking a proactive approach to ensuring that the industry is operating safely and competently. For a while, authorities in Canada have been vigilant about Bybit, issuing warnings to the exchange.
Due to the financial downturn in 2022, the exchange had to reduce its workforce by 30%.
With regulators keeping a closer eye on the exchange, the exchange could still make further changes to its workforce. But it remains functional in the meantime.
The FSA is taking a proactive approach to regulating the cryptocurrency industry in Japan, and other regulators worldwide are taking similar steps. Hence, crypto exchanges need to stay up to date with the latest regulations and ensure that they are compliant.
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