At the end of last month, Japan’s Financial Services Agency warned four cryptocurrency exchanges (Bybit, MEXC, Bitget, and Bitforex) against offering cryptocurrency transactions without registration!
Warning to Crypto Exchanges from Japan
Among the firms that have received warnings from the Financial Services Agency, Bitforex is based in the Republic of Seychelles, and Bybit, MEXC Global, and Bitget are based in Singapore. However, these organizations provide services to Japanese users over the Internet.
Many users and institutions were surprised to learn that the two cryptocurrency exchanges that were alerted were Bybit and Bitget, the 6th and 7th largest in the world by 24-hour trading volume. The reason is that both Bybit and Bitget have a significant market share and are widely used by Japanese traders. Moreover, Bybit ranks sixth in the world for futures contracts in terms of derivatives trading volume.
Studies Against Irregularities
Since 2018, the Financial Services Authority has stepped up its scrutiny of unregistered businesses and tightened measures following a cryptocurrency leak from Coincheck. In the past, the Financial Services Authority, the National Police, and the Consumer Affairs Agency have also held director-general-level meetings to confirm increased cooperation.
In 2021, the country also warned Binance, a major cryptocurrency exchange, that it was offering services to users in Japan without registration.
In the US, the US Commodity Futures Trading Commission (CFTC) sued Global Binance and its CEO Changpong Zhao (CZ). Binance knowingly failed to comply with US law and provided unregistered derivatives trading services to US investors.
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