Japanese Regulator Issues Official Warning to LBank Exchange
Japan’s primary financial regulator has issued a formal warning to the LBank Exchange as part of its efforts to crack down on foreign cryptocurrency exchanges that target Japanese customers.
On June 14, the Financial Services Agency (FSA) issued a warning to LBank Exchange for providing Japanese residents with cryptocurrency transactions without proper registration.
According to Japanese law, all domestic exchanges must obtain operating permits issued by the FSA. This rigorous process has deterred many major players from entering the Japanese market and has prompted others to exit in recent years.
The law also stipulates that overseas companies targeting Japanese residents must either cease their activities or apply for FSA permits. In the past, the FSA has contacted top exchanges like Binance to request compliance with these regulations.
However, the FSA has intensified its scrutiny of foreign platforms in recent years. In 2023, the FSA warned Bybit, MEXC Global, Bitget, and Bitforex for providing cryptocurrency trading services to Japanese residents without proper registration.
In its online publication on June 16, the FSA highlighted concerns about LBank’s lack of a verifiable address and an identified CEO.
Japanese regulations on cryptocurrency are considered to be stricter compared to other countries, as the nation has faced significant cryptocurrency exchange hacks, such as the Mt. Gox collapse in 2014 and the Coincheck hack in 2018.
Following these incidents, Tokyo implemented comprehensive regulations to oversee domestic crypto exchanges. LBank, headquartered in Indonesia, claims to have offices in various countries including the United States, the UAE, the British Virgin Islands, Canada, Lithuania, and Australia.
Established in 2015, LBank’s website states that it supports over 50 fiat currencies, including the Japanese yen.
