Japan recently issued a warning to four cryptocurrency exchanges, including Bitget, Bybit, MEXC and Global Binance, for operating unregistered virtual currency exchanging business. The exchanges, particularly Bybit, were listed on the unregistered traders list as they were suspected of performing the unregistered business. This is especially concerning considering that these cryptocurrency exchanges are major players in the digital asset market show its 24-hour trading volume list, with Bybit and Bitget ranking 6th and 7th respectively. Additionally, Bybit is used heavily by Japanese traders and holds a considerable share in derivative trading, where it places 6th on 24-hour derivatives trading volume list.

This is not the first time Japan has warned cryptocurrency exchanges. In 2018, a cryptocurrency leak from Coincheck prompted the Financial Services Authority of Japan to increase its oversight of unregistered businesses. As as a result, the Financial Services Authority, the National Police Agency, and the Consumer Affairs Agency held a general manager-level meeting to ensure increased cooperation. As recently as 2021, Binance, another major crypto exchange, was issued a second warning for offering services to users in Japan without registration.

The US was also active in the legal pursuit of crypto exchanges this year. The US Commodity Futures Trading Commission (CFTC) sued Global Binance and its CEO Changpong Zhao (CZ), arguing that the exchange failed to comply with US laws, in turn providing unregistered derivatives trading services to US investors.

Overall, Japan and other countries that have laid down legal frameworks for cryptocurrency exchanges and digital assets transactions seem to be committed to regulating cryptocurrency exchanges, keeping them in check. It remains to be seen what measures will be taken in the future, however most eyes are currently on major crypto exchanges in Japan and the US.



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