Japan warns crypto exchanges including Binance and Bybit about this | BitChain – BitChain
In a warning letter issued last Friday, Japan’s Financial Services Agency (FSA) said that a number of cryptocurrency exchanges, including Binance, Bybit, MEXC Global, and Bitget, are doing business in the country without proper registration, violating the country’s money-settlement laws. .
Japan warns cryptocurrency exchanges
According to the warning letter, the Financial Services Authority stated that the listed exchanges had violated Japan’s money-settlement regulations by conducting crypto-asset exchange business without proper registration. The regulator explained that the current list of unregistered traders may not accurately represent the current situation of unregistered companies.
The FSA’s action follows a crackdown on unregistered cryptocurrency exchanges in the East Asian country. In 2020, the Financial Services Authority (FSA) introduced new regulations that require cryptocurrency exchanges to register with the agency and obtain a license to operate in the country.
Regulatory scrutiny on the cryptocurrency market
The Financial Services Authority has warned Binance, which indicates that the cryptocurrency industry in the country, and other countries, is facing greater regulatory scrutiny. The risks associated with unregulated cryptocurrency exchanges, such as fraud, money laundering and market manipulation, are of more and more concern to regulators.
Although Japan is working on new regulations for the crypto and Web3 sectors, the country has not cracked down on the industry like some other major economies like the US.
Cryptocurrency exchange Binance and its founder, Changpeng Zhao, were recently sued by the United States Commodity Futures Trading Commission (CFTC), over US regulatory violations.
Tokyo and Binance’s warning.. not the first time
It is worth noting that Tokyo, through the FSA, previously issued a formal warning letter to the cryptocurrency exchange Binance, to operate without the necessary permissions in 2021.
Some news sites have tried to reach out to crypto exchanges Binance, Bybit, and MEXC for comment on the warning issued by the country’s Financial Services Authority, but received no response at the time of publication, and we will certainly bring you more details in the coming hours.
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