The Japanese Financial Services Agency recently demanded Tech giants Apple and Google remove their platforms from a list of top exchanges operating in the country.
The exchanges involved include Bybit, Kucoin, Mexc, Lbank and Bitget. These exchanges are among the top exchanges in the crypto industry and are locked in a regulatory tussle with the Japanese government.
Apple responded to the request by removing the exchanges from their app store in the country. The Global tech giants stated that they have repeatedly warned the exchanges not to operate for Japanese people but they keep breaking the rules.
At the time of the report, there has been no report on whether Google has delisted the said apps following the order by Japanese authorities. There is also no mention of Binance in the ongoing regulatory tussle between Japanese authorities and crypto exchanges.
Cryptocurrency in Japan
Japan has established itself as a significant player in the cryptocurrency industry in the Asian market while maintaining a tight regulatory framework.
The Japanese market has experienced wide adoption despite stringent regulatory policies.
In 2017, Japan recognized Bitcoin and other digital currencies as legal property under the Payment Services Act (PSA), requiring cryptocurrency exchanges to register with the Financial Services Agency (FSA) and adhere to Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) obligations.
The five listed exchanges above obviously don’t meet the regulatory requirements put in place by the FSA hence the dispute.
Japan’s Anti-ETF Stance Despite Growing Adoption
Despite its progressive stance, Japan remains cautious in certain areas. For instance, the country has been hesitant to approve spot crypto ETFs, citing concerns over past crypto scandals and a lack of societal acceptance.
Additionally, security challenges persist, highlighted by significant crypto heists attributed to North Korean hackers in 2024, including a $308 million theft from Japan’s DMM Bitcoin exchange.
Japan’s cryptocurrency industry is marked by a balance between controlled innovation and cautious regulation, creating the perfect environment for crypto adoption.
