The Financial Services Agency (FSA) of Japan has issued a warning to the LBank Exchange for offering cryptocurrency transactions to Japanese residents without proper registration. This is part of the FSA’s efforts to crack down on overseas crypto exchanges that target Japanese customers. In Japan, all exchanges must apply for operating permits issued by the FSA, a process that has deterred many large players from entering the market. The law also requires overseas firms targeting Japanese residents to either stop doing so or apply for permits.
In recent years, the FSA has increased its scrutiny of overseas platforms, warning exchanges like Binance, Bybit, MEXC Global, Bitget, and Bitforex for providing cryptocurrency trading to Japanese residents without registration. The FSA’s warning to LBank was issued on June 14 and published online on June 16, citing concerns about the platform’s lack of a verifiable address and an identified CEO. LBank offers JPY pairings and has conducted cryptocurrency exchange business with Japanese residents via the internet.
Japanese crypto regulation is known for being stricter than many international counterparts due to high-profile hacks in the past, such as the Mt. Gox collapse in 2014 and the Coincheck hack in 2018. These incidents led Tokyo to establish comprehensive regulations for domestic crypto exchanges. LBank, headquartered in Indonesia with offices in various countries, including Japan, claims to support over 50 fiat currencies including the Japanese yen. The exchange was launched in 2015 and has faced scrutiny from the FSA over its operations targeting Japanese residents.
As part of the FSA’s efforts to ensure compliance with Japanese regulations, the warning issued to LBank emphasizes the importance of proper registration for cryptocurrency exchanges operating in the country. Overseas platforms targeting Japanese customers are required to adhere to these regulations to continue offering services in Japan. Failure to comply can result in penalties and further regulatory action. The FSA’s crackdown on unauthorized cryptocurrency exchanges aims to protect Japanese investors and maintain the integrity of the country’s financial market.
In conclusion, the warning issued by the Financial Services Agency to the LBank Exchange highlights the agency’s commitment to enforcing regulations on cryptocurrency exchanges operating in Japan. As part of its ongoing efforts to crack down on overseas exchanges targeting Japanese customers, the FSA is increasing scrutiny and issuing warnings to platforms that do not comply with registration requirements. LBank’s offering of cryptocurrency transactions to Japanese residents without proper registration has prompted the FSA to take action, emphasizing the need for all exchanges to adhere to Japanese laws and regulations to operate legally in the country.
