Japan Issues Warning Against Unregistered Cryptocurrency Exchanges Including Bybit and Binance

The Financial Services Authority of Japan has issued warnings against four cryptocurrency exchanges, including Bybit and MEXC. According to CoinGecko, Bybit is currently ranked seventh in the world’s 24-hour trading volume chart, and Bitget is sixth. Bybit is also popular among Japanese traders in derivatives trading, where it ranks sixth in futures contracts.

Bybit was warned in May 2021 that it was conducting an unregistered virtual currency exchange business and was added to the unregistered traders’ list. The Financial Services Authority has increased its scrutiny of unregistered businesses since the 2018 cryptocurrency leak from Coincheck. To strengthen cooperation, the Financial Services Authority, the National Police Agency, and the Consumer Affairs Agency held a general manager-level meeting.

Binance, another major cryptocurrency exchange, has also been warned twice by Japan for offering services to users without registration. In the US, the Commodity Futures Trading Commission (CFTC) sued Binance and its CEO, Changpong Zhao, for knowingly failing to comply with US laws and providing unregistered derivatives trading services to US investors.

Regulators around the world are tightening their grip on the cryptocurrency industry to protect investors and prevent fraud. It is crucial for cryptocurrency exchanges to comply with regulations in each country they operate to avoid being penalized or shut down. As the cryptocurrency market continues to grow, it is expected that more regulations will be implemented to ensure the industry’s transparency and accountability.