Japan Issued Warning Against 4 Exchanges Including Bybit And MEXC

Key Points:

• Japan’s Financial Services Agency has warned four overseas cryptocurrency exchanges for offering cryptocurrency transactions without registration.
• 4 exchanges including Bybit, MEXC, Bitget and Bitforex.
• Since 2018, the Financial Services Authority has stepped up its scrutiny of unregistered businesses following a cryptocurrency leak from Coincheck.

On March 31, the Japanese Financial Services Agency issued a warning to four overseas crypto asset (virtual currency) exchanges for offering cryptocurrency trading without registration based on administrative principles.

Bybit Fintech Limited, MEXC Global, Bitget Limited, and Bitforex Limited have been alerted. Bitforex is based in the Republic of Seychelles, and Bybit, MEXC Global, and Bitget are based in Singapore, but they also provide services to Japanese residents through the Internet.

Among them, according to market data site CoinGecko, Bitget is currently 6th and Bybit 7th in the 24-hour trading volume chart, both of which are major exchanges in the world. Bybit also has a significant market share in derivatives trading and is heavily used by Japanese traders. In terms of 24-hour derivatives trading volume, it ranks sixth in futures contracts.

In May 2021, Bybit was alerted that they were conducting an unregistered virtual currency exchange business, and it was listed on the unregistered traders list.

Since 2018, the Financial Services Authority has stepped up its scrutiny of unregistered businesses following a cryptocurrency leak from Coincheck. At the time, the Financial Services Authority, the National Police Agency, and the Consumer Affairs Agency held a general manager-level meeting to confirm the increased cooperation.

In 2021, the country also warned Binance, a major cryptocurrency exchange, that it was offering services to users in Japan without registration. It was the second warning to the exchange after 2018.

In the US, the US Commodity Futures Trading Commission (CFTC) sued Global Binance and its CEO Changpong Zhao (CZ). Binance has knowingly failed to comply with US laws and provided unregistered derivatives trading services to US investors.

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