7th February 2025 – (Tokyo) Japan’s Financial Services Agency (FSA) has formally requested that Apple and Google remove five unregistered cryptocurrency exchange applications from their platforms, reinforcing the country’s commitment to regulatory compliance within the crypto sector.
The exchanges in question include Bybit Fintech, based in Dubai, Singapore’s MEXC Global and Bitget, alongside LBank Exchange and KuCoin from Seychelles. While this request was made last week, Apple acted promptly, removing the applications from its App Store on 6th February, thus preventing downloads by Japanese users, as reported by Nikkei on 7th February.
Japan’s regulatory approach to cryptocurrency remains more cautious compared to other Asian markets. Unlike Hong Kong, which has approved spot Bitcoin and Ether exchange-traded funds (ETFs), Japanese regulators continue to express concerns over the volatility and associated risks of crypto ETFs.
According to industry experts, the FSA’s action is not indicative of a crackdown on retail cryptocurrency investing. Anndy Lian, a blockchain expert, emphasised that the move is about setting clear boundaries for market participation: “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.’”
Lian further noted that Japan has consistently led in digital asset regulation, prioritising consumer protection and market integrity. This regulatory decision follows the FSA’s announcement of a new tax reform for 2025, which will treat crypto assets similarly to traditional financial assets.
The stringent regulatory environment in Japan does not signal an adversarial stance towards cryptocurrency; rather, it reflects a commitment to investor safety and accountability. Lian remarked, “Japan’s regulatory framework isn’t some arbitrary hurdle; it’s a safeguard designed to protect investors from chaos, like the Mt. Gox incident.”
The collapse of Mt. Gox, a major Bitcoin exchange, in 2014 resulted in losses exceeding $9.4 billion for over 127,000 investors. Recently, in a notable development for the industry, Mt. Gox began distributing Bitcoin to creditors, with 41.5% of the total owed amount being settled by 30th July, 2024.