On November 28, 2024, Japan's Financial Services Agency (FSA) issued warnings on X against five cryptocurrency exchanges for operating without proper registration. The platforms were found offering services to Japanese residents, violating the Financial Instruments and Exchange Act.
Among the flagged entities were KuCoin, Bybit Fintech Limited, Bitget Limited, MEXC Global, and Bitcastle LLC. These exchanges, operating from locations such as the Seychelles, Dubai, and Singapore, were conducting unauthorized cryptocurrency trading services targeting Japanese users via the internet. The FSA said that these unregistered operations do not meet the consumer protection standards required under Japanese law.
The agency reiterated that all cryptocurrency exchanges offering services in Japan must be properly registered. It advised users to check the licensing status of platforms before engaging in any transactions.
According to the Financial Services Agency (FSA), Japan’s cryptocurrency regulatory framework requires all exchanges operating in the country to register, with only 31 exchanges meeting the rigorous criteria as of October 2024. These include major names such as bitFlyer, Coincheck, Rakuten Wallet, and Binance.
In August 2023, Binance launched a dedicated platform for Japanese residents, marking its compliance with Japan's Financial Services Agency (FSA) regulations. This move followed the acquisition and rebranding of SAKURA Exchange BitCoin Inc. to Binance Japan Inc., enabling Binance to operate under local regulatory standards.
According to Statista, the cryptocurrency market in Japan is expected to generate a projected revenue of approximately $1.38 billion USD in 2024.