A Warning To Four Overseas Crypto Exchanges by Japanese Financial Agency

On April 3, according to the transaction guidelines, the Japan Financial Agency issued a warning to four overseas cryptocurrency exchanges on March 31 regarding the provision of cryptocurrency transactions without registration in Japan, namely, Bybit, MEXC, Bitgate, and Bitforex. Bitforex is headquartered in the Republic of Seychelles, and Bybit, MEXC Global, and Bitget are headquartered in Singapore. （CoinPost）

Foreign media: Japan’s Financial Agency issued a warning to four crypto exchanges, including Bybit and MEXC

Cryptocurrencies have been in the market for years now, and their popularity has been on the rise due to their features. Cryptocurrency can easily be called a digital or virtual currency that uses encryption to secure and verify transactions while also controlling the creation of new units. While it offers immense benefits, the decentralized nature of crypto has made it worrying for regulators worldwide. The Japanese Financial Agency has recently issued a warning to four overseas crypto exchanges that violated the transaction guidelines.

The Warning

On March 31, the Japan Financial Agency issued a warning to four overseas cryptocurrency exchanges over the provision of crypto transactions without registration in Japan. The four exchanges are Bybit, MEXC, Bitgate, and Bitforex. These exchanges were regulating market conditions without the required authorization or notification to the Financial Services Agency. This highlights the cryptocurrency-based services’ importance and the need for better regulations by crypto exchanges in various parts of the world.

Bybit

Bybit is a Singapore-based cryptocurrency exchange that offers perpetual futures contracts for several digital assets. It was launched in 2018, and it’s CEO is Ben Zhou. In the warning issued by Japan’s Financial Agency, Bybit was stated to be one of the four violations conducting such trades without authorization or notification to the regulator.

MEXC

MEXC Global is another Singapore-based cryptocurrency exchange that offers various investment opportunities from several digital assets. However, like Bybit, it failed to authorize or notify the regulator of upcoming trades and regulatory conditions. The company’s CEO is John Chen, and the exchange has stated that they will rectify their notification system soon.

Bitgate

Bitgate is a regulated Tokyo-based cryptocurrency exchange that offers trading and investment opportunities in different digital assets. The company didn’t receive the authorization or notify the regulator of the regulation conditions while it provided cryptocurrency transactions in Japan. Bitgate has assured customers that its notification and authorization system with the regulator will soon be fully restored.

BitForex

BitForex is another violator of the regulatory guidelines by the Japanese Financial Agency. The Seychelles-based crypto exchange platform deals with several digital assets and primarily offers an over-the-counter trading platform. However, BitForex has not yet registered with the Financial Services Agency, resulting in the warning by the regulatory body.

Conclusion

Regulators worldwide have been harsh on cryptocurrencies, and the Japanese Financial Agency’s warning to these four exchanges showed their willingness to regulate the crypto space. More so, because these cryptocurrency exchanges transacted without authorization, regulators have issued a warning of action if such practices continue. Adherence to regulatory conditions is necessary in various parts of the world for Crypto to have a chance of mainstream adoption.

FAQs

1. What are cryptocurrencies?
Cryptocurrencies are digital or virtual currencies that use encryption to verify transactions’ authenticity and secure the creation of new units, allowing secure transactions without the need for financial institutions’ intermediaries.
2. Why did the Japanese Financial Agency issue a warning to the four overseas cryptocurrency exchanges?
The regulatory body’s regulatory guidelines require that companies providing cryptocurrency transactions in Japan should notify or receive authorization from the regulator. The firms transacted without notifying or seeking authorization, leading to a warning.
3. Are cryptocurrencies legal worldwide?
Cryptocurrencies have varying legality in different parts of the world, with some countries accepting it as a legal tender, while others have banned its use altogether.