The Financial Services Agency (FSA) of Japan has issued a formal warning to five overseas crypto exchanges for operating without proper registration. 

The exchanges named are KuCoin, Bitcastle LLC, Bybit Fintech Limited, MEXC Global, and Bitget Limited.

Japan’s FSA Gives a Stern Warning to Unregistered Crypto Exchanges

This isn’t the first warning for most of these crypto exchanges. As BeInCrypto reported back in April 2023, the FSA gave registration warnings to MEXC Global, Bybit, and Bitget. It seems that these exchanges have yet to comply. 

Japanese law mandates that any platform offering cryptocurrency trading services within the country must register with the FSA and the Finance Department. 

However, these exchanges allegedly provided services to Japanese users without securing the required authorization. Unregistered platforms fall outside the regulatory oversight of the FSA, raising concerns about the safety of customer funds. 

Without registration, there are no guarantees of proper asset management or protections under Japanese law in cases of disputes or financial losses. 

Additionally, customers of these platforms cannot rely on asset conservation or compensation measures typically ensured for regulated entities.

“JFSA issued warnings to Crypto-asset Exchange Service Providers that are operating crypto-asset exchange business without proper registration in violation of the Payment Services Act,” the agency

Go to Source to See Full Article
Author: Mohammad Shahid