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FSA warns 4 companies including Bybit
On March 31, the Financial Services Agency issued a warning to four overseas crypto asset (virtual currency) exchanges for offering cryptocurrency trading without registration based on administrative guidelines.
Bybit Fintech Limited, MEXC Global, Bitget Limited and Bitforex Limited were alerted. Bitforex is based in the Republic of Seychelles, and Bybit, MEXC Global, and Bitget are based in Singapore, but they also provide services to Japanese residents through the Internet.
Among them, according to the market data site CoinGecko, Bitget is currently ranked 6th and Bybit 7th in the 24-hour trading volume ranking, both of which are large exchanges in the world. Bybit also has a large market share in derivatives trading and is highly used by Japanese traders. In terms of 24-hour derivatives trading volume, it ranks sixth in futures.
What are derivatives
Financial products derived from underlying assets such as virtual currencies and stocks. The English notation is “derivative” which means “derived”. Also called “financial derivatives” in Japanese. Representative derivatives include futures trading, option trading, and swap trading. They are used to reduce the risk in trading the underlying asset or simply to pursue higher profitability.
Cryptocurrency Glossary
Since 2018, the Financial Services Agency has strengthened its surveillance of unregistered businesses following the cryptocurrency leak from Coincheck. At that time, the Financial Services Agency, the National Police Agency, and the Consumer Affairs Agency held a director-general-level meeting to confirm the strengthening of cooperation.
In May 2021, Bybit was warned that it was conducting an unregistered virtual currency exchange business, and it had already been listed on the unregistered trader list.
connection: Financial Services Agency lists virtual currency exchange Bybit on the list of unregistered traders
A Warning to Binance and Afterwards
In 2021, he also warned Binance, a major cryptocurrency exchange, that it is providing services to users in Japan without registration. It was the second warning to the exchange after 2018.
Binance will then enter Japan in November 2022 through the acquisition of Sakura Exchange Bitcoin Co., Ltd. By acquiring the company, which has already been registered as a domestic business operator, it seems that the procedure and time required for the start of operations have been shortened.
At this time, new registration of users residing in Japan to the global version of Binance (Binance.com) has been suspended. If you try to register from Japan, you will be blocked with the message “You are trying to access our service from a restricted jurisdiction.”
connection: The world’s largest virtual currency exchange Binance to enter Japan, acquire Sakura Exchange
CFTC sues Binance in the US
In the United States, the US Commodity Futures Trading Commission (CFTC) has sued Global Binance and its CEO Changpong Zhao (CZ). Binance deliberately failed to comply with U.S. law and provided unregistered derivatives trading services to U.S. investors.
Instead of the US version of Binance, it is asking the global version of Binance to return illegal gains, pay fines, and permanently ban business registration.
In addition, it is problematic that it did not follow basic procedures for combating the financing of terrorism (CFT) and anti-money laundering (AML).
connectionUS CFTC sues Binance and CZ for violating US law
CFTC (Commodity Futures Trading Commission)
An organization that supervises the futures trading market in the United States, including commodities listed on commodity exchanges, interest rates, and derivatives in general. A government agency established in 1974. To protect market participants and ensure the soundness of the market, we will prevent and detect fraud. “CFTC” stands for “Commodity Futures Trading Commission”.
Cryptocurrency Glossary
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