Japan’s Financial Services Agency (FSA) has directed Apple and Google to remove five crypto exchanges including Bybit and KuCoin from their respective stores for lack of compliance.
Under Japan’s Payment Services Act, any exchange operating in the country must be registered with the FSA to ensure compliance and consumer protection.
The move aims to protect Japanese users from the risks associated with unregistered platforms, such as fraud and hacking.
The Japanese government has taken a firm stance on regulatory compliance by asking tech giants Apple and Google to remove five cryptocurrency exchange applications from their respective app stores.
The move is aimed at preventing Japanese users from downloading platforms that have not registered with the country’s Financial Services Agency (FSA). According to a local news report on Friday, the affected exchanges include Bybit, MEXC Global, LBank Exchange, KuCoin, and Bitget.
Apple Complies to FSA’s Request
Under Japan’s regulatory framework, any cryptocurrency exchange wishing to operate in the country must be officially registered with the FSA. This requirement is designed to ensure that these platforms adhere to strict standards that safeguard investors and maintain market stability.
Despite clear legal obligations, exchanges such as Bybit, , and their peers have continued to serve Japanese customers without the necessary authorization. Last week, the FSA formally reached out to both Apple and Google, insisting that they remove these apps from their platforms.
In response, Apple promptly complied, removing the apps from its App Store, thereby blocking Japanese iPhone users from downloading them. According to a local news , Google has yet to respond to the request.
The FSA maintains that unregistered exchanges lack the necessary oversight, which increases risks such as fraud, hacking, and overall financial instability.
The regulator made itself clear that any offshore exchange wishing to tap into the Japanese market must first secure registration with the FSA.
Regulation for Safety, Not a Crypto Ban
Meanwhile, Japan’s cautious regulatory approach is informed by painful lessons from the past — most notably, the 2014 Mt. Gox hack, which resulted in staggering losses of $9.4 billion for investors. Other incidents, such as the 2018 Coincheck breach where over $530 million was stolen, further underscore the necessity of robust oversight.
While its recent enforcement might seem like a harsh measure against the crypto market, industry experts believe that the FSA’s actions are not about shutting down crypto investments; they are intended to protect consumers and preserve market integrity.
According to , this approach is not about being anti-crypto. Instead, Japan is signaling that exchanges can continue to operate within its borders if they adhere to proper registration and compliance procedures.
This proactive stance is further reflected in the new tax reform introduced by the FSA for 2025, which classified digital assets to be treated similar to traditional financial assets, a signal that Japan is committed to long-term crypto integration rather than exclusion.
While Japan is taking a more cautious stance, neighboring countries like Hong Kong, are embracing a more expansive approach. Hong Kong recently implemented a comprehensive regulatory framework for crypto operations and has even integrated spot Bitcoin and Ethereum ETFs into its financial markets.