Japan Demands App Stores Halt Unregistered Crypto Exchanges
Japan’s Financial Services Agency (FSA) has called on Apple and Google to block the download of crypto exchange apps that operate without proper registration. Local media report that Apple has already removed these apps from its App Store, while Google has yet to comment on any planned action.
The FSA’s request is the first of its kind and targets exchanges such as Bybit and MEXC Global, along with three other unnamed overseas platforms. Under Japan’s Payment Services Act, crypto exchanges must register with the FSA to operate legally, ensuring they meet anti-money laundering (AML) and investor protection standards.
For some time, the FSA has tightened its grip on the crypto market by enforcing strict know-your-customer (KYC) and AML rules. Previously, the agency issued multiple warnings to Bybit, MEXC Global, and other firms to stop catering to Japanese users. When these platforms allegedly continued to offer their services, the regulator decided to take stronger action.
Japan is known for having one of the strictest regulatory frameworks for cryptocurrency in the world. The current system was put in place after significant hacks at Mt. Gox and Coincheck, which resulted in massive customer losses. Registered exchanges in Japan are required to keep customer funds separate from company assets, maintain robust security measures, and undergo regular audits by the FSA.
This move highlights Japan’s commitment to enforcing compliance within its crypto sector and raises important questions about how major tech companies will handle government requests in the future. Industry analysts suggest that the action could force unregistered exchanges to either comply with the regulations or exit the Japanese market altogether.