The Japan Financial Services Agency (FSA) has issued a warning to Bybit, a crypto derivatives exchange over registration. The warning which marks the first of its kind in about three years by the regulator was issued on Friday. The major reason being that the FSA does not consider Bybit as a registered entity in the country.
According to the financial agency, Bybit was operating in the country without permission and was offering unlicensed services to citizens. In over three years, the FSA had never issued such a warning to any exchange. The most recent time such a warning was sent out was to Binance in March 2018.
The FSA called out the exchange platform over the unlicensed operations in the country which Binance accepted and proposed its intentions to gradually restrict Japanese citizens from its trading features. However, this proposal is yet to be met as Japanese residents continue to access the exchange’s services.
Another derivatives company, Deribit in a bid to avoid regulatory sanctions from the Japanese government blocks IP addresses from Japan on its exchange. Earlier in April, the FSA announced intentions to implement the “travel rule” to prevent crypto currency exchanges in the country from using digital assets for money laundering and terrorist financing.
Bybit Faces its Second Warning
The cryptocurrency exchange platform which is based in Singapore has faced its second warning. The warnings related to registrations and licensing were earlier issued a warning several months ago by the U.K.’s Financial Conduct Authority (FCA). This warning was obviously stricter as the platform was compelled to shut down services in the country.
At present, Bybit is the fourth largest exchange company that trades futures and gives crypto traders to trade perpetual contracts up to 100:1 leverage. However, the value of awaiting derivatives contracts isn’t clarified.