Crypto exchanges around the world are witnessing distinct issues ranging from regulatory to banking, etc. The Japanese financial watchdog recently sent notice to at least four crypto exchanges operating within the country. The regulatory action is likely to surface following the anticipation of potential crypto regulations.
The Financial Services Agency (FSA), financial regulator of Japan, reportedly warned four crypto exchanges for registering themselves as crypto exchanges to continue further operations. Bybit, MEXC Global, Bitforex and Bitget like exchange firms received notice from the agency.
Given the fiasco across the broader crypto space started with the fall of Terra (LUNA) network, the authorities across the world increased scrutiny over the largely unregulated cryptosphere. Since such devastating incidents result in loss of hard-earned assets of retail investors, financial authorities tend to safeguard them with proper regulation of the burgeoning asset class.
Increasing Demands of Crypto Regulations
Japan is also reported to be working towards development of a new stablecoin bill. Also, the Japanese banks are also working on the native currency yen-backed stablecoin, the Progmat Coin, seeking the frictionless payment settlement. In addition, some other crypto and Web3 related regulations are also on their way to get drafted.
The concerns around crypto regulations remained the same across the countries where agencies are taking enforcement actions or lawmakers seeking regulations. Crypto companies are facing regulatory issues mostly in the United States since the Securities and Exchange Commission’s (SEC) is after the crypto industry.
Many crypto firms were either sued or faced enforcement actions by the SEC on different charges. Ripple vs SEC lawsuit being one of the popular cases in crypto where the regulator charged the company and its executives for trading unregistered securities. It also took actions against crypto exchange Kraken for crypto staking services offering and fined 30 million USD for past offerings. Later on, leading US crypto exchange Coinbase also received Wells notice from the agency.
Yet Another Notice for Bybit
For Dubai headquartered crypto exchange Bybit, it was not the first time to receive such notice. Japan’s FSA sent a similar notice to the company earlier in May 2021. In addition, some other authorities like the British regulator Financial Conduct Authority (FCA) also showcased the similar concerns from the company. In addition, Canadian authorities also reportedly warned the crypto exchange.
Bybit has been through the struggling phase during last year’s crypto winter which caused the company to lay off a significant 30% of its staff. Though the scrutiny over crypto exchange seems to have increased, the usual operations over the platform are going on as usual. The exchange is placed under the top ten crypto exchanges list over the CoinMarketCap’s platform.
Source: https://www.thecoinrepublic.com/2023/04/04/crypto-exchanges-like-bybit-received-warning-from-japans-fca-crypto-exchanges-around-the-world-are-witnessing-distinct-issues-ranging-from-regulatory-to-banking-etc-the-japanese-financial/