Japan’s FSA Urges Apple and Google to Remove Unregistered Crypto Exchange Apps
👤Jay Robinson ⏲️February 7, 2025
Japan’s Financial Services Agency (FSA) has officially called on Apple and Google to remove unregistered crypto exchange apps from their respective app stores. The regulatory body mentioned Bybit and KuCoin, citing concerns over investor protection and compliance with Japan’s financial laws.
Crackdown on Unlicensed Crypto Exchanges
The FSA has long maintained strict regulations for cryptocurrency exchanges operating in Japan. Under the Payment Services Act, all exchanges that offer crypto trading services to Japanese residents must register with the FSA and comply with anti-money laundering (AML) and know-your-customer (KYC) regulations. However, several offshore exchanges, including Bybit and KuCoin, have continued to operate without proper registration, prompting regulatory action.
This latest move pressures tech giants Apple and Google to assist in enforcing Japan’s crypto regulations by delisting non-compliant exchange apps from the App Store and Google Play. The FSA argues that by allowing access to these platforms, the tech companies are indirectly facilitating potential financial risks for Japanese investors.
Why the FSA Is Taking Action
The FSA’s decision to push for app store removals is driven by:
Investor Protection: Unregistered crypto exchange apps lack oversight, increasing the risk of fraud, hacking, and financial loss.
Regulatory Compliance: Exchanges must meet AML and KYC standards to prevent illicit financial activities.
Market Stability: Ensuring only registered platforms operate helps maintain trust and stability in Japan’s crypto market.
Impact on Japan’s Crypto Industry
If Apple and Google comply, Japanese investors will lose direct access to these platforms, potentially driving them toward registered domestic exchanges like bitFlyer, Coincheck, and GMO Coin.
Japan’s stance could influence other countries to demand similar enforcement from tech companies.
Additionally, affected platforms may seek legal action or compliance pathways to regain access to the Japanese market.
Japan tightening its grip on unregistered crypto exchange apps signals a stronger regulatory environment that could reshape the country’s digital asset landscape.
Also read: KUCOIN Fined $300m After Pleading Guilty for Ignoring Anti-Money Laundering Law
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