Japan Pressures Apple and Google to Block Unregistered Crypto Exchanges

Japan‘s Financial Services Agency (FSA) has taken decisive action against unregistered cryptocurrency exchanges, instructing Apple and Google to remove five such platforms from their app stores in the country. Bybit, MEXC Global, LBank Exchange, KuCoin, and Bitget were publicly named for operating without proper regulatory approval under Japan’s Payment Services Act.

In response to the directive, Apple reportedly removed the applications from its Japanese App Store on Thursday, following multiple warnings from the regulator. Google, however, has yet to take similar action. The restriction applies only to future downloads, allowing users who have already installed the apps to continue accessing them.

Japan has issued similar warnings in the past, starting in 2018, yet unregistered exchanges have continued to operate, often circumventing regulatory oversight by catering to customers across borders. The latest move underscores Japans commitment to enforcing one of the strictest cryptocurrency regulatory frameworks in the Asia-Pacific region.

The FSA has been urging financial institutions to strengthen their monitoring of transactions involving crypto exchange providers, particularly those deemed unlawful under the Payment Services Act. This initiative aligns with broader efforts to ensure compliance and mitigate risks associated with unregulated digital asset trading.

While South Korea leads in retail cryptocurrency trading volumes, Japan has prioritised institutional participation in the sector. Major corporations, including Nomura, SBI, SMBC, Sony, and DMM, have actively engaged in digital asset development. Additionally, Japans three largest banks (MUFG, SMBC, and Mizuho) are currently conducting trials for a cross-border stablecoin transfer platform, aimed at expediting international settlements for enterprises.

Despite strong institutional backing, Japans Web3 venture capital landscape remains relatively modest, with most startups securing funding in the range of $1 million to $3 million, that is significantly lower than the larger capital raises observed in other global markets.

Meanwhile, in a separate industry development, Hong Kong-based OSL Group has expanded its presence in Japan by acquiring the local crypto exchange CoinBest, subsequently rebranding it as OSL Japan.