Japan’s regulatory body, the Financial Services Agency (FSA), has requested Apple and Google to stop downloads of five unsanctioned cryptocurrency exchanges, emphasizing its commitment to enforce regulatory standards in the nation. The FSA’s move targets five cryptocurrency exchanges (CEXs) including Bybit Fintech based in Dubai, MEXC Global and Bitget from Singapore, LBank Exchange, and KuCoin headquartered in Seychelles.
Though the FSA made this request in the previous week, Apple pulled these apps from its App Store on February 6, barring Japanese customers from downloading them, as reported by Nikkei on February 7.
Japan’s approach towards cryptocurrency has been more conservative compared to other Asian markets. While Hong Kong approved the first spot Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs), Japanese officials remain cautious about the potential volatility and risks linked to crypto ETFs.
The FSA’s move to restrict downloads of unregistered crypto exchanges is not an outright clampdown against cryptocurrency investing, industry experts suggest.
As Anndy Lian, a renowned author and intergovernmental blockchain expert remarked to Cointelegraph, “This is not about turning off crypto investment. It’s about setting boundaries and declaring that if you want to participate in our market, you must abide by our rules.”
The FSA’s regulatory action comes about five months after it introduced a new tax reform for 2025 that will treat cryptocurrencies as traditional financial assets. Japan’s rigorous regulatory landscape is not an attack on crypto, but a means to ensure investor safety and accountability, Lian added.
The infamous Mt. Gox Bitcoin exchange, based in Tokyo, collapsed in 2014 following a massive hack, causing losses of over $9.4 billion for more than 127,000 investors. In a significant step towards mainstream acceptance, Mt. Gox completed 41.5% of its Bitcoin distribution to creditors on July 30, 2024, distributing a total of 59,000 Bitcoin.
