Japan’s financial regulator asks Apple, Google to block unregistered crypto exchanges: report
Japan’s financial regulator, the Financial Services Agency, has formally requested Apple and Google to block five unregistered overseas crypto exchanges on their respective app stores in the country for the first time, Nikkei reported.The companies targeted are Bybit, MEXC Global, LBank Exchange, KuCoin and Bitget, according to the news outlet. The FSA issued a warning under the Payment Services Act and decided to make the names of the firms public.Apple reportedly removed the apps in Japan on Thursday in response to the agency’s request, having repeatedly warned the companies not to offer services to Japanese citizens. Google is yet to respond to the request, Nikkei said.However, any such block only prevents future downloads and Apple and Google are unable to remove apps that customers have already downloaded, meaning that their use may persist.Unregistered exchanges can often operate across borders without being subject to the regulations and oversight of individual countries. Japan issued its first warning in 2018 under the Payment Services Act, but unregistered businesses continue to operate in the country.The Block reached out to the crypto exchanges in question for comment.Crypto in JapanJapan has a relatively stricter attitude to the crypto industry than other jurisdictions, with its FSA encouraging financial institutions in the country to strengthen their monitoring of "unlawful" transfers to crypto exchange providers last year.However, while South Korea leads the way in the Asia-Pacific region in terms of retail trading volumes, Japan has carved out a different niche in the crypto space — becoming a hotspot for enterprise participation, with major players like Nomura, SBI, SMBC, Sony and DMM making significant strides.Japan’s three megabanks — MUFG, SMBC and Mizuho — are also trialing a cross-border stablecoin transfer platform, aiming to offer faster international settlement for enterprises.Japan's web3 venture capital scene, on the other hand, is limited, with entrepreneurs struggling to raise significant capital, typically securing only $1 to $3 million, compared to the hundreds of millions raised abroad.Earlier this week, the Hong Kong-based OSL Group exclusively told The Block it had completed the acquisition of Japanese crypto exchange CoinBest, renaming it to OSL Japan, as the company eyes global expansion.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.