Japan’s FSA sends a warning to the Bybit exchange after the central bank governor criticized the digital currency

The Japanese government’s Financial Services Agency (FSA) has warned about the Bybit cryptocurrency derivatives exchange because the exchange allows Japanese access to the exchange. The news follows that Bank of Japan Governor Haruhiko Kuroda has criticized digital currencies for speculating.

Japan’s FSA warns Bybit Fintech Limited

Japan’s leading regulator recently managing the banking, securities, stock market and insurance sectors in the economy given Warning to Bybit Fintech Limited. Bybit is a crypto derivatives exchange that offers cryptocurrency futures, perpetual swaps, and other types of contracts for crypto asset traders. The FSA warning says Bybit operators are allowing Japanese nationals to use the platform, noting that the exchange is not registered with the regulator.

The news quickly spread on social media, and people discussed how Binance was warned about the same thing three years ago. In 2018, the Japanese FSA sent Binance a warning of failure to meet the regulatory authority’s registration requirements. The problems with Bybit come at a time when regulators around the world are cracking down on crypto services. Japanese regulators, like South Korea’s, are stepping up regulations to meet Financial Action Task Force (FATF) requirements for virtual assets.

The governor of the Japanese Central Bank (BoJ), Haruhiko Kuroda, also criticized the leading digital currency Bitcoin (BTC) on speculative grounds last week. “Most trades are speculative and the volatility is very high,” Kuroda told the press last Thursday. It is rarely used as a settlement resource. ”The BoJ leadership could urge the FSA to take action against speculative trading and crypto derivatives exchanges.

Bybit left the UK two months ago

A report released in August 2020 showed that Bybit had expanded into Japan, Korea, and Synthetic Team by that time. The report written by Mohammad Musharraf states that Bybit’s platform “supported the Japanese yen and Korean won.” Bybit is one of the five largest futures exchanges in the world in terms of trading volume in futures. Bybit was also alerted by the UK Financial Services Authority last February.

“We believe this company is providing financial services or products in the UK without our approval,” the UK Financial Regulator said at the time. In a post on Blog Released March 31st, Bybit crypto derivatives exchange announced that it has ceased operations in the UK region.

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According to News.Bitcoin

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