Japan’s Financial Services Agency (FSA) has warned four cryptocurrency exchanges, including Bybit, of operating without a license.
The other exchanges mentioned in the notice are MEXC Global, Bitforex, and Bitget. Bybit has received similar warnings, including one from Japan’s FSA in May 2021 and issues raised by the UK regulator around the same time.
The FSA’s warning indicates that Japan is focusing on regulating cryptocurrency exchanges. This move aims to prevent incidents such as the crash of Terra, a recent cause of concern for Japanese authorities.
In addition to warning crypto exchanges, Japanese authorities have asked the US and the EU to regulate crypto-like banks. They believe that the size of the crypto market warrants scrutiny comparable to that of traditional banking institutions.
Japan’s recent developments also include a new stablecoin bill that is set to come into effect. Additionally, banks are working on a yen-backed stablecoin called Progmat Coin, which aims to streamline settlement processes.
Japan’s focus on regulating the cryptocurrency market indicates the growing importance of digital assets and the need for clear guidelines for their safe and legal operation.