In Japan, where cryptocurrencies are of intense interest, the authorized organization has issued a warning regarding a crypto exchange.
A warning has been issued by the Japanese Financial Services Agency (FSA) to LBank Exchange, an offshore cryptocurrency exchange, for operating without appropriate registration.
The FSA asserted that LBank Exchange was engaging in online cryptocurrency exchange trading with Japanese residents as its counterparties, and that it had an “unknown address” and an “unknown agent,” as per a report published by CoinPost. According to the statement, this violates the FSA’s operational guidelines, which mandate that exchanges be registered and adhere to specific standards to safeguard investors.
Based on the CoinGecko database, LBank Exchange, a medium-sized to small exchange, occupies the 56th position in terms of 24-hour spot trading volume. Japanese officials have expressed apprehension regarding the exchange’s lack of transparency and regulatory compliance, despite its substantial scale.
The FSA has previously taken action against unregistered exchanges. The agency issued a warning to four additional companies in March of last year, namely Bybit Fintech Limited, MEXC Global, Bitget Limited, and Bitforex Limited, for offering cryptocurrency trading services without registration. It is still impossible to access and trade on these platforms from Japan, despite these warnings.
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