Japan’s Financial Services Agency (FSA) issued four crypto exchanges for operating in the country without proper registration.
Japan’s FSA sent a warning letter to four foreign cryptocurrency exchanges for operating in the country without the necessary registration. The exchanges include Bybit, BitForex, MEXC Global and Bitget. The FSA alleges the exchanges were “conducting crypto asset exchange business without proper registration,” which violates Japanese laws.
The regulators ordered that the exchanges register themselves as exchanges to conduct their operations. The FSA added that the list of unregistered traders “does not necessarily indicate the current state of unregistered business.”
Bybit previously received a similar warning from the FSA. In 2021, the exchange received a warning letter from the regulator, which accused it of operating without a license.
Japan Is Developing Crypto Policy And Guidelines
While Japan has not been cracking down on the crypto industry as harshly as the United States, for instance, it is developing policies and guidelines for stablecoins, NFTs and DAOs.
Japan recently said it is considering lifting the ban on cryptocurrency restrictions related to stablecoins such as Tether (USDT) and USD Coin (USDC). Local reports indicated that the new stablecoin regulations would enable local exchanges to facilitate stablecoin trading under the condition of asset preservation.
Japan’s ruling Liberal Democratic Party also approved the revisal of an onerous tax requirement that aims to improve business conditions for companies issuing cryptocurrencies. The proposal would exempt token issuers from paying taxes on unrealized capital gains.
Before the revisal, Japanese cryptocurrency issuers had to pay a 30% corporate tax rate on their holdings, regardless of whether they had realized a profit through the sale.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.