Japan's Financial Services Agency (FSA) has warned against four foreign cryptocurrency exchanges supposedly operating in the country without local registration. These exchanges are Bybit, BitForex, MEXC Global, and Bitget.

FSA Finds Four Crypto Exchanges in Violation of Local Rules

According to the FSA notice issued last Friday, all four named cryptocurrency exchanges are in violation of the country's fund settlement laws as they conducted "crypto asset exchange business without registration." In addition, the regulatory warning highlighted that having a list of unregistered traders "does not necessarily indicate the current state of unregistered business."

Bybit is a big name when it comes to cryptocurrency futures trading, though the platform offers crypto options and spot instruments. The platform handled more than $10 billion worth of crypto derivatives in the last 24 hours, according to Coinmarketcap, only behind Binance, which is the market leader.

Bitget is another crypto exchange that gained popularity because of its high-profile sports deals. It signed Argentinian football star Lionel Messi as its brand ambassador and is sponsoring the Italian soccer club Juventus.

Previous Warnings

Regulators in Japan are not as hostile towards cryptocurrency exchanges as in other developed countries. However, the FSA closely monitors the industry and requires the registration of all cryptocurrency platforms operating in the country.

On top of that, the FSA issued a formal warning against Bybit in 2021 and BitForex in 2020 for operating within its jurisdiction without any mandatory permissions. Though for MEXC, it was the first warning by FSA, South Korean authorities flagged it and 15 other crypto platforms for illegally operating in the country. Moreover, the Japanese regulator took strict action following the collapse of FTX and suspended the license of the local FTX entity.

Meanwhile, the FSA in 2021 warned against the crypto giant, Binance, which is now facing civil charges in the US, for similar registration issues. However, Binance bolstered its presence in the east Asian country by acquiring 100 percent ownership of Sakura Exchange BitCoin (SEBC).

On the other hand, Coinbase, a publicly-listed crypto exchange, shuttered its Japanese operations earlier this year, citing a severe market slump and heightened volatility.