Japan's FSA Sends Warning to Bybit - In a bid to regulate cryptocurrency exchanges operating in Japan, the Financial Services Agency (FSA) has issued
Japan’s FSA Sends Warning to Bybit – In a bid to regulate cryptocurrency exchanges operating in Japan, the Financial Services Agency (FSA) has issued a warning to 4 exchanges including Bybit, MEXC Global, Bitforex, and Bitget.
The warning was related to the fact that they are operating without registrations. This is not the first time Bybit has received a warning over its operations. Back in May 2021, the crypto derivatives exchange received its first warning from the financial regulators. The United Kingdom’s Financial Conduct Authority (FCA) also issued a warning to Bybit around that time.
The letter highlights that the listed exchanges must be properly registered as cryptocurrency exchanges before carrying out operations in the country. The notice also stated that the exchanges were violating the country’s fund settlement laws.
Bybit, the world’s fourth-largest cryptocurrency exchange received a warning from the FSA following the recent action to restrict illegal crypto exchanges operating in East Asian nations.
The new regulation was introduced in 2020. It requires cryptocurrency exchanges to register with the FSA and obtain the required license to operate in the country. The country is paying attention to regulations to prevent crypto-related issues like the Terra and FTX crash.
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Crypto Regulation Developments in Japan
Even though Japan has been working on new regulations on the crypto and Web3 sector, the country has been fair in the industry compared to other bigger countries like the United States. Japan authorities have been petitioning the US and European Union to regulate crypto exchanges stating that the crypto market is large and requires scrutiny as much as banking institutions.
Another significant developments as regards regulations in Japan are the fact that the new stablecoin bill will soon be passed and effective.
Bybit Targeted by Regulators
As earlier stated, Bybit received a regulatory warning from the United Kingdom’s FCA. Also, the crypto exchange giant has been on the radar of other countries’ regulatory bodies. Canada already issued a warning to the exchange, the crypto exchange doesn’t work in the United States, and also it suspended USD deposits from its international customers since March 10.
Bybit and the 2022 Market Crash
The year 2022 witnessed a significant market crash and it affected Bybit. According to a tweet from WuBlockchain, The company was moved to lay off its working staff by 30%. The CEO said in June 2022:
“I am exploring a way to help Bybit by removing overlapping functions and building smaller but more agile teams to improve our efficiency. Starting from this week some of the functions androles will be reviewed for combination or adjustment.”
Though regulators are tightening their watch over the exchange giant, they still seem to be operating normally.