Japan's Financial Services Agency (FSA) said in a warning letter that cryptocurrency exchanges Bybit, BitForex, MEXC Global and Bitget operate in the country without proper registration.
Japan Regulatory Authority Declares 4 Cryptocurrency Exchanges to be Unregistered
The notice stated that the exchanges were violating the country's funds settlement laws by "running a crypto-asset swap business without registration" at the time of issuing the warning letter.
The regulator also said that the list of unregistered investors "does not indicate the current state of unregistered businesses".
While Japan is working on new regulations for the crypto and Web3 sectors, the country has not put as much pressure on the sector as some other major economies such as the US after 2022 was a turbulent year for the markets.
The FSA had issued an official warning letter to Bybit in 2021 for operating without the necessary permits.
In Japan, any crypto exchange operating in the country must be registered with the FSA and comply with its regulations.
These regulations include strict rules on customer protection, anti-money laundering (AML), and know-your-customer (KYC) procedures.
Failure to comply with these regulations may result in fines and legal sanctions.
Bybit, BitForex, MEXC Global, and Bitget are popular crypto exchanges that offer a variety of trading services to clients around the world.
For example, Bybit is known for its futures trading platform that allows users to trade cryptocurrency derivatives with high leverage.
BitForex, MEXC Global, and Bitget also offer a range of trading products, including spot trading, margin trading, and futures trading.
This warning from the FSA is just the latest in a series of regulatory actions taken against crypto exchanges around the world.
Regulators in various countries, including the United States and China, have been putting pressure on cryptocurrency trading platforms in recent months, citing concerns about investor protection and financial stability.
*Not investment advice.