Japan Targets Binance and 4 Other Crypto Exchanges as Bittrex Pulls Out of US Market

[ad_1]

Get all the essential market news and expert opinion in one place with our daily newsletter. Get a full recap of the day’s top stories straight to your inbox. Register here !

(Kitco News) – The global crypto crackdown continues to unfold as Japan has become the latest country to take action against its growing cryptocurrency industry by sending warning letters to several foreign crypto exchanges. advising that they are operating in the country without the proper registration. .

On Friday, Japan’s financial regulator, the Financial Service Agency (FSA), sent letters to several exchanges – including Binance, MEXC Global, Bybit, Bitforex and Bitget – warning them that their operations violate national fund settlement regulations. by facilitating the exchange of crypto assets without first completing the registration process.

The regulator also said the five exchanges are not the only non-compliant companies and that their action “does not necessarily indicate the current status of unregistered companies”.

The regulations in question were first introduced in 2020 and require all cryptocurrency exchanges to register with the agency and obtain a license to operate in Japan.

So far, Japan hasn’t been as tough as some other countries when it comes to regulating its crypto industry, but that seems to be changing amid a global push by governments around the world to limit cryptocurrency. illicit use of cryptocurrency and establish a clear regulatory framework. for individuals and businesses.

For example, the FSA sent its first formal warning letter to Binance and Bybit for operating without the necessary permissions in 2021, but the exchanges have yet to see any serious consequences for continuing to operate.

Japan’s warning is just the latest in a growing list of Binance’s woes after US authorities sued the exchange and its founder Changpeng “CZ” Zhao for violating US securities laws.

Any exchanges that fail to comply with FSA regulations and continue to operate without the proper records are subject to fines and legal action. This warning highlights the increasing scrutiny from regulators that crypto exchanges and businesses are facing in Japan and around the world.

Concerns about illegal activities such as money laundering, fraud, tax evasion and market manipulation have risen amid a growing global banking crisis, and regulators are scrambling to close any exit loopholes of capital and to stop other illicit activities.

While many exchanges have chosen to work with regulators in an effort to continue providing services in certain jurisdictions, others have chosen to close shop and focus on more welcoming governments. Coinbase and Kraken, two of the largest exchanges in the United States, closed their operations in Japan due to difficult market conditions and the need to cut expenses and refocus efforts.

On Friday, cryptocurrency exchange Bittrex announced that it would exit the US market after nine years of operation because “it’s just not economically viable for [them] continue to operate in the current US regulatory and economic environment.

After discussing the nine-year journey, Richie Lai, CEO and Co-Founder of Bittrex, said, “Regulatory requirements are often unclear and enforced without proper discussion or input, resulting in an uneven competitive landscape…Operating in States United States is no longer feasible and Bill, Rami and I will focus on making Bittrex Global successful outside of the United States.

Bittrex’s withdrawal from the US market follows the country’s crackdown on crypto-bank providers following the collapse of Silvergate Bank, Silicon Valley Bank and Signature Bank.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

[ad_2]