- Japan’s FSA has removed five unregistered crypto-currency exchanges from the Apple Store, restricting new downloads but not affecting existing users.
- Japan’s strict regulations contrast with its plans to relax rules on non-exchange crypto-currency intermediaries to encourage innovation in blockchain.
Japan’s Financial Services Agency (FSA) recently asked Apple and Google to remove the apps of five unregistered crypto-currency exchanges: Bybit, KuCoin, MEXC Global, LBank and Bitget. Japanese users can therefore no longer download these applications from the Apple Store.
For those who have already installed them, however, the services of these exchangers are still available. Google, however, has made no official comment on whether it intends to take the same measures as Apple.
Strict regulations: Obstacle or protection?
Until now, Japan has not been alone in applying regulations in the cryptographic space. The strict rules implemented by the Japanese government to protect investors are well known. Japan seeks to reduce risks to consumers by ensuring that all ongoing exchanges follow specific guidelines and are recorded.
The question is, however, whether this is purely a matter of consumer protection, or whether there are other reasons why Japan is so selective Some see this approach as an attempt to compromise between industry growth and stringent rules, so that companies that don’t meet the criteria can’t operate as they should.
Japan’s approach to blockchain innovation
Fascinatingly, Japan intends to impose fewer rules on non-exchange crypto intermediaries, such as blockchain-based gaming apps and self-directed crypto wallets, amid stricter rules for crypto-currency exchanges. As previously reported, the project was revealed in December as a means of promoting technical innovation.
While protecting investors, the proposed regulations seek to streamline compliance for companies not directly involved in crypto-currency trading. This implies that Japan is seeking the ideal balance of control rather than categorically rejecting the growth of the crypto-currency sector.
Japan’s position on bitcoin in national reserves
In addition to laws relating to crypto-currency exchanges and intermediaries, Japan has also clarified how bitcoin is treated in national reserves. Citing its high volatility, which does not meet exchange stability criteria, the government has refused to add bitcoin to its reserves.
Traditionally, Japan’s foreign exchange reserves have depended more on items considered safer, such as government bonds and central bank deposits. Including bitcoin in reserves is considered dangerous due to its price volatility, and runs counter to Japan’s stability-oriented economic policies.
