Japan’s App Store Orders Removal of Unregistered Crypto Exchange

Japan’s App Store orders the removal of unregistered crypto exchange apps, following concerns raised by the country’s authorities. The removal of these apps has left users with limited access to some major platforms. According to a report by Yahoo Japan, mobile applications for several crypto exchanges, including Bybit, KuCoin, Bitget, MEXC, and LBank, have been pulled from Japan’s App Store. These exchanges had previously received warnings from Japan’s Financial Services Agency (FSA) for operating without the necessary registration in the country. The FSA has been stepping up its regulatory efforts in the crypto space, signalling the importance of compliance with local laws.

The issue centers around the operation of unregistered crypto exchange apps in Japan. These platforms had been offering their services without being officially registered with Japan’s Financial Services Agency, which requires all crypto exchanges operating in the country to adhere to specific regulatory standards. According to Yahoo Japan, this lack of registration led to the removal of apps like Bybit, KuCoin, and Bitget, among others.

However, the situation is not affecting all crypto exchanges. Notably, apps for Crypto.com and CoinEx remain available in Japan’s App Store despite the heightened scrutiny. The report points out that when users search for “crypto assets” or “virtual currency” in the App Store, these two platforms still appear in the results, suggesting that they may either have complied with regulatory standards or are operating under different provisions.

Unregistered Crypto Exchange: Bybit Responds to Removal

In response to the removal of its app, Bybit took to its official blog on February 6, 2025, to confirm the situation and reassure its Japanese users. The company acknowledged the app’s removal but clarified that users who had already downloaded it would still be able to use it without encountering any issues. Bybit also emphasized that the removal would not impact its services in Japan.

“We sincerely apologize for any inconvenience or concern this may cause,” Bybit said in a statement. “Please note that this does not affect Bybit’s services in any way. We continue to serve Japanese-speaking customers, and all functions, including deposits, withdrawals, and trading, remain fully operational. All customer accounts and assets are securely protected.”

Bybit also clarified that, despite the absence of the app in the Japanese App Store, its users can still carry out all their normal activities within the platform. This includes accessing trading services, making deposits, and withdrawing funds. Bybit’s reassurances are important in light of the ongoing regulatory crackdown.

The Broader Context of Regulatory Scrutiny

The timing of these app removals is notable. Authorities in Japan have been increasingly focused on enhancing the regulatory environment for cryptocurrencies. As recently as December 2024, the Financial Services Agency (FSA) announced that it would be revising its guidelines for crypto exchanges to align with international standards. This update would include stricter measures for internal audits and the oversight of exchanges operating within Japan’s jurisdiction.

In late January 2025, the FSA hosted a roundtable event where it discussed the importance of improving internal audits in financial institutions, including crypto exchanges. The meeting saw participation from the Japan Cryptocurrency Exchange Association (JCEA), a group that represents registered crypto exchanges in the country. While the details of the discussions were not disclosed, it is clear that Japan is working towards more stringent oversight of its crypto industry.

The Growing Concern Around Unregistered Crypto Exchanges

The removal of unregistered crypto exchange apps from Japan’s App Store is part of a broader trend in which authorities are taking stronger action against unregistered or non-compliant crypto platforms. Regulatory bodies are becoming more vigilant as the crypto space continues to grow, ensuring that platforms operating in their jurisdictions adhere to the same standards as traditional financial institutions.

Japan, which has long been a leader in cryptocurrency regulation, is now looking to tighten its control over the sector to prevent illegal or unregistered crypto exchanges from operating freely. The FSA has already signaled its intention to improve internal audits of crypto exchanges and is actively working with industry groups to promote better compliance.

Despite this crackdown, not all unregistered exchanges have been affected. The continued availability of apps from platforms like Crypto.com and CoinEx shows that some exchanges are either already registered with the FSA or are operating in a way that allows them to avoid removal.

Conclusion: A Shift Toward Compliance

The removal of unregistered crypto exchange apps like Bybit, KuCoin, and Bitget highlights the growing regulatory environment in Japan. It serves as a clear reminder to all crypto platforms that adhering to local regulations is essential for maintaining access to the Japanese market. As the FSA continues to update its policies and introduce more rigorous standards, platforms that fail to meet these criteria could face further removal from the App Store or other restrictions.

As of now, there has been no public comment from Japan’s Financial Services Agency regarding the removal of these apps. However, the ongoing regulatory tightening is likely to continue shaping the future of crypto exchange operations in Japan.

In conclusion, Apple’s decision to remove several unregistered crypto exchange apps from its App Store reflects Japan’s heightened focus on compliance and regulation within the cryptocurrency sector. With other platforms potentially facing scrutiny, exchanges may need to reassess their operations in Japan to avoid similar consequences.

TheBITGazette remains committed to providing updates on the latest trends and developments, ensuring that investors stay informed about the ever-evolving landscape of cryptocurrency investments.