Japan Regulator Targets Unregistered Crypto Exchanges

Japan's financial regulator has taken action against several cryptocurrency exchanges for conducting unregistered operations.

The Financial Services Agency (FSA) issued warning letters to companies, including KuCoin, NeonFX, TheOption, and GTCFX, for soliciting over-the-counter derivatives trading via the internet without registration.

Of the four platforms listed by the FSA, KuCoin stands out as it offers services to Japanese residents, which is a repeat offense after a similar warning was issued in November 2024.

The FSA's notice comes as Japan's regulatory framework is set to shift from the Payment Services Act to the Financial Instruments and Exchange Act, which will provide regulators with greater enforcement authority over unregistered platforms.