Japan Financial Watchdog Urges Apple and Google to Halt Unregistered Crypto Exchange Downloads

Japan Financial Watchdog Urges Apple and Google to Halt Unregistered Crypto Exchange Downloads

Japan’s Financial Services Agency (FSA) has reinforced its commitment to regulatory compliance by requesting Apple and Google to suspend downloads of five unregistered cryptocurrency exchanges.

The affected platforms include Dubai-based Bybit Fintech, Singapore-based MEXC Global, LBank Exchange, Seychelles-based KuCoin, and Singapore-based Bitget.

According to a Feb. 7 report by Nikkei, Apple acted on the FSA’s request made last week, removing these applications from the App Store on Feb. 6—effectively preventing Japanese users from accessing them.

Japan’s Regulatory Approach: Strict but Not a Crypto Crackdown

Unlike some of its Asian counterparts, Japan has maintained a cautious stance on cryptocurrency regulation. While Hong Kong has already approved the first spot Bitcoin and Ether exchange-traded funds (ETFs), Japanese regulators remain skeptical, citing concerns over market volatility and investor risks.

However, industry experts emphasize that Japan’s latest action is not an outright crackdown on retail cryptocurrency investment but rather a move to enforce compliance.

Blockchain expert Anndy Lian told Cointelegraph:

“This isn’t about shutting down crypto investing. It’s about drawing a line in the sand and saying, ‘If you want to play in our market, you’ve got to play by our rules.’ And honestly, I think that’s exactly the right move.”

Lian further highlighted Japan’s leadership in digital asset regulation, stating:

“Japan has always been ahead of the curve when it comes to regulating digital assets, and this is just another example of them prioritizing consumer protection and market integrity.”

Investor Protection Over Market Suppression

Japan’s regulatory actions align with its broader efforts to safeguard investors. Nearly five months ago, in September 2024, the FSA introduced a new tax reform for 2025, categorizing crypto assets similarly to traditional financial assets.

Lian underscored that Japan’s regulations are designed to prevent past failures, such as the infamous collapse of Mt. Gox in 2014, which resulted in $9.4 billion in investor losses across 127,000 victims.

“Japan’s regulatory framework isn’t some arbitrary hurdle; it’s a safeguard designed to protect investors from the kind of chaos we’ve seen in the past, like the Mt. Gox debacle. If these exchanges want to serve Japanese users, all they need to do is get compliant.”

In a notable development, Mt. Gox has made significant progress in repaying its creditors. As of July 30, 2024, the exchange had distributed 41.5% of its Bitcoin repayment, totaling 59,000 BTC.

Conclusion

Japan’s latest move signals its continued commitment to strict but fair crypto regulations. While the country is not outright banning cryptocurrency exchanges, it is making it clear that compliance is non-negotiable for any platform wishing to operate in its market.