Japan demands removal of unregistered crypto exchange apps from Apple and Google stores
Japan’s Financial Services Agency (FSA) has taken decisive action against unregistered cryptocurrency exchanges, requesting Apple and Google to remove their apps from their respective stores. This move reinforces Japan’s commitment to strict regulatory compliance while ensuring that crypto trading platforms operate within its legal framework.
The FSA specifically targeted five cryptocurrency exchanges operating without proper registration, including Dubai-based Bybit Fintech, Singapore-based MEXC Global, LBank Exchange, Seychelles-based KuCoin, and Singapore-based Bitget.
Following the FSA’s request, Apple removed the apps from its App Store on Feb. 6, preventing Japanese users from downloading them. The move was reported by Nikkei on Feb. 7 and signals Japan’s firm stance on protecting investors from unregulated trading platforms.
Japan has historically maintained a strict and structured regulatory approach toward cryptocurrency, prioritizing consumer protection and market integrity. Unlike Hong Kong, which has recently approved the first spot Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs) to expand crypto adoption, Japan’s regulators remain cautious about the risks associated with crypto ETFs, citing concerns over volatility and security.
Despite this cautious stance, Japan’s regulators emphasize that the removal of unregistered crypto exchange apps does not indicate a crackdown on crypto trading itself. Instead, the move ensures that only legally compliant exchanges operate in Japan. Industry experts highlight that Japan has always been ahead of the curve in regulating digital assets, making investor protection a priority.
The FSA’s proactive regulatory approach is rooted in past experiences, particularly the collapse of Mt. Gox in 2014, one of the biggest failures in crypto history.
The Tokyo-based Bitcoin exchange was hacked, leading to $9.4 billion in losses affecting over 127,000 investors globally. This event prompted Japan to establish one of the world’s most comprehensive regulatory frameworks for cryptocurrency exchanges.
As part of efforts to restore trust in the industry, Mt. Gox completed 41.5% of its Bitcoin repayments on July 30, 2024, distributing 59,000 BTC to affected creditors. This milestone is seen as a significant step toward accountability in Japan’s crypto ecosystem.
While Japan enforces strict regulations, it continues to foster crypto innovation. The country recently introduced a 2025 tax reform, treating crypto assets similarly to traditional financial instruments, aiming to provide clearer guidelines for taxation and reporting.
Japan’s regulatory framework is not designed to hinder crypto adoption but rather to ensure that exchanges operate with proper oversight, consumer protection, and market stability. Experts argue that if exchanges like Bybit, MEXC Global, and KuCoin want to serve Japanese users, they must comply with Japan’s licensing requirements.
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