LBank Exchange Warning Issued By Japan’s Financial Watchdog With Illegal Allegations

Key Points:

• LBank Exchange warning was issued by the Japanese Financial Services Agency for allegedly unregistered cryptocurrency trading.
• This follows previous warnings to other exchanges last year, signalling ongoing regulatory scrutiny in Japan.
• The FSA aims to enhance security measures on exchanges after past incidents to protect investors.

The Japanese Financial Services Agency (FSA) has issued a stern warning to the overseas cryptocurrency exchange LBank Exchange, cautioning that it is operating without proper registration to offer cryptocurrency trading services in Japan.

Japan’s FSA Issues LBank Exchange Warning

According to a CoinPost report, the LBank Exchange warning comes from the fact that this exchange operates from an undisclosed location with an unknown representative, engaging in crypto asset trading activities accessible to Japanese residents via the Internet.

LBank Exchange warning follows previous actions by the FSA against several other companies last year, including Bybit Fintech Limited, MEXC Global, Bitget Limited, and Bitforex Limited, all of which were similarly cautioned for operating without registration for cryptocurrency trading.

LBank Exchange, as per CoinGecko statistics, currently ranks 56th in terms of 24-hour spot trading volume among small and medium-sized exchanges.

Security Tightening Efforts Follow Coincheck Hack in Japan

The FSA’s move comes amid heightened scrutiny over cryptocurrency exchanges in Japan, prompted by previous security highlights such as the notable Coincheck hack in January. Following the theft of approximately $531 million worth of NEM tokens from Coincheck, the FSA conducted on-site inspections to assess the exchange’s security measures and financial capabilities to compensate affected users.

Looking forward, the FSA plans to expand its inspections to several other cryptocurrency exchanges within the country, aiming to enforce stricter security protocols to preserve investors and prevent future cyber intrusions.