Japan Targets Crypto Apps, Apple & Google Alerted
In a bold attempt to enhance regulatory control, Japan’s Financial Services Agency (FSA) has requested that Apple and Google suspend the ability to download five unlicensed Bitcoin and crypto trading apps. Bybit Fintech in Dubai, MEXC Global in Singapore, LBank Exchange, KuCoin in the Seychelles, and Bitget in Singapore are among the affected platforms. In compliance with the Payment Services Act, the Japanese Financial Services Agency warned these companies and disclosed their identities. It had previously advised these companies not to conduct business with Japanese consumers, but they continued to do so, so the Japanese Financial Services Agency decided to request that they cease operations for the first time. While the request was submitted last week, Apple quickly responded by removing the programs from its App Store on Feb. 6, according to a report by Nikkei on Feb. 7. A Push for Crypto Regulatory Compliance Despite concerns that this decision indicates a greater crackdown on cryptocurrency trading in Japan, industry analysts say that the FSA’s decision is about maintaining regulations rather than discouraging Bitcoin investment. Also read: Jupiter DEX and Former Malaysian PM’s X Accounts Hacked to Promote Scam Meme Coins Anndy Lian, an international blockchain expert, confirmed that there is no ban on cryptocurrency investments. It is about defining regulatory measures, “If you want to play in our market, you must follow our rules.” Lian further added, “And, to be honest, I believe that is the right decision”. Japan has long been a global leader in cryptocurrency regulation, implementing strict consumer protection laws in reaction to earlier industry failures, such as the infamous Mt. Gox hack. The collapse of the Tokyo-based exchange in 2014 resulted in a loss of approximately $9.4 billion in Bitcoin for 127,000 investors. However, in a show of progress, Mt. Gox began making partial Bitcoin payments to creditors in 2024, dispersing 59,000 BTC. Japan’s Regulatory Approach Versus Global Trends Japan’s cautious regulatory stance is different from other key Asian countries, like Hong Kong, which has already approved the first Bitcoin and Ethereum ETFs. While Japan remains cautious of the volatility of cryptocurrency-based financial products, recent legislative reforms suggest a desire for better stability. Also read: Billionaire Investors Go Crypto: TIGER 21 Commits $6 Billion to Digital Assets Notably, the FSA’s recent approach follows its 2025 tax reform plan, which seeks to harmonize the taxation of crypto assets with regular financial products. This trend indicates that Japan is improving its framework for digital assets rather than simply rejecting them. As the global crypto business evolves, Japan’s stringent yet organized regulatory regime could serve as a model for balancing innovation and investor protection. Compliance is no longer a choice for cryptocurrency exchanges looking to operate in Japan, it is a requirement.