Japan’s Financial Services Agency (FSA) has taken a strong stance against unregistered digital currency exchanges operating within the nation, leading to a request for Google and Apple to remove five main crypto exchange apps from their respective app stores in Japan. The targeted apps include Bybit, KuCoin, Bitget, LBank, and MEXC, as reported by local news outlet Nikkei.
This move is part of Japan’s stringent crypto regulations, which require every exchange catering to Japanese consumers to register with the FSA. The regulatory authority’s request highlights Japan’s ongoing efforts to ensure industry compliance with cryptocurrencies. Under Japan’s Payment Services Act, any crypto exchange serving Japanese citizens must obtain regulatory clearance before operating in the nation.
Despite the regulations in place, the FSA found that Bybit, KuCoin, Bitget, LBank, and MEXC continued to provide services to Japanese consumers without proper registration. As a result, authorities ordered their removal from app stores in an effort to limit access to these platforms and prevent users from engaging in transactions that do not meet Japanese regulations.
While Apple promptly removed the targeted crypto trading apps from its Japanese App Store in response to the FSA’s request, Google’s reaction remains unclear. There is no confirmation that Google has taken similar action on the Japanese Google Play Store, potentially impacting Japanese consumers’ access to these exchanges.
Japan has some of the strictest regulations for bitcoin exchanges globally, with a focus on user protection following past security breaches and fraud cases. Licensed exchanges in Japan are required to adhere to rigorous anti-money laundering (AML) and know-your-customer (KYC) rules. The recent enforcement action against unregistered exchanges demonstrates Japan’s commitment to eliminating non-compliant services and serves as a warning to other exchanges operating without proper registration.
Despite being a major center for cryptocurrency adoption, Japan’s legislative framework continues to tighten. The FSA’s latest enforcement action signals that Japan is unwilling to tolerate trade that does not meet its licensing criteria. The future of crypto in Japan remains uncertain as the nation maintains its strict stance on regulatory compliance within the industry.