On the 28th, the Financial Services Agency issued warning letters to five overseas cryptocurrency exchanges for operating cryptocurrency (virtual currency) exchanges without registration with Japanese residents as counterparties.
The exchanges that the FSA warned this time are as follows.
- KuCoin
- Bitcastle LLC
- Bybit Fintech Limited
- MEXC Global
- Bitget Limited
Bybit has received warnings in the past, and this is the third time. This is also the second time MEXC and Bitget have received warnings.
In Japan, businesses must register as cryptocurrency exchange businesses when providing services that are subject to regulations for cryptocurrency exchange businesses. In addition, from the perspective of customer protection, for example, if cryptocurrency is illegally leaked due to hacking, domestic cryptocurrency exchange businesses are subject to asset preservation and compensation, but overseas businesses cannot receive such protection. Therefore, from the perspective of customer protection, it is recommended to use services provided by domestic cryptocurrency exchange businesses in Japan.
Reference: Announcement
Image: Shutterstock
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