According to reports by local Japanese media, several overseas cryptocurrency exchanges’ applications were abruptly removed from Japanese mobile app stores.
The exchanges confirmed to have been removed include Bybit, Bitget, MEXC, KuCoin, and LBank. Should users in Japan try to download these apps from the official website, they get a message that says, “This application is currently not available in this country or region.”
Additionally, when entering the names of these exchanges in the search bar, no related applications could be found, which means new users will be unable to create accounts.
The FSA announced new tax reforms for 2025. The new laws will treat crypto assets with the same standards as traditional financial assets.
Apple promptly complied, but Google has not
On February 6, reports emerged that several cryptocurrency exchange apps were hidden from Apple’s Japanese App Store. Google, on the other hand, has yet to respond to the FSA’s demands as of this report.
The Financial Services Agency had already sent letters warning the affected exchanges for operating cryptocurrency exchanges without registration in Japan. KuCoin, Bitcastle, Bybit, MEXC Global, and Bitget received their letters in November 2023, while LBank heard from the regulator in June 2023.
For some reason, Bitcastle is still available for download, even though it also received a warning. One report speculated that it may be because the exchange seems to now be abiding by the FSA’s rules.
Another cryptocurrency app still available on the App Store is Gate.io, which acquired domestic cryptocurrency exchange Coin Master in December last year.
Bitforex also received a warning in 2023, and it no longer appears when searched on the App Store.
Bybit released a circular to assure its Japanese clients that all is well. However, local reports confirm that the app has been removed from the Apple App Store.
If the apps don’t return to the app stores, it is very likely that users will not be able to update the affected crypto exchange apps.
The Japanese FSA wants to protect its investors
This incident is being viewed as concrete action by Japanese financial regulatory authorities to pay more attention to the supervision of unregistered cryptocurrency exchanges. The Japanese government has maintained its plan to protect investors’ rights and regulate the financial market.
Japan’s regulatory approach to cryptocurrency is considerably more cautious compared to other Asian markets. Unlike Hong Kong, which has already approved spot Bitcoin and Ether exchange-traded funds (ETFs), Japanese regulators remain cautious, expressing concerns over the volatility and associated risks of the underlying crypto assets behind these ETFs.
Notably, industry stakeholders do not believe the FSA’s action is part of a crackdown on retail cryptocurrency investing.
Anndy Lian, a blockchain analyst, said: “This isn’t about shutting down crypto investing. It’s about drawing a line in the sand and saying, ‘If you want to play in our market, you’ve got to play by our rules.’”
Still, there are existing regulatory loopholes that allow some exchanges to provide services via other channels. Users with non-Japanese Apple IDs can still download these applications within the country.
Also, some unlicensed exchanges, such as Crypto.com and CoinEx, can still be searched and downloaded from the Japan App Store.
There’s still speculation about the FSA implementing stricter measures in the future and how the affected overseas exchanges will respond.
Cryptopolitan Academy: How to Write a Web3 Resume That Lands Interviews – FREE Cheat Sheet
