Japan Asks Apple and Google to Delist 5 Crypto Exchange Apps

• Japan’s FSA has removed five unregistered crypto exchanges from the Apple Store, restricting new downloads but not affecting existing users.
• Japan’s strict regulations contrast with its plan for lighter rules on non-exchange crypto intermediaries to encourage blockchain innovation.

Japan’s Financial Services Agency (FSA) recently asked Apple and Google to remove apps from five unregistered cryptocurrency exchanges—Bybit, KuCoin, MEXC Global, LBank, and Bitget. Users in Japan can thus no more download these apps from the Apple Store.

For individuals who have already installed them, though, the services of these exchangers are still available. Google has not, however, expressed an official comment on whether they will take Apple’s identical actions.

Strict Regulation: Obstacle or Protection?

Japan has not only acted to enforce regulations in the crypto space until now. Strong rules implemented by the Japanese government to safeguard investors are well-known. Japan is seeking to lower consumer risks by making sure all running exchanges follow particular guidelines and are registered.

The issue is, though, is this only a matter of consumer protection or are there other reasons Japan is so selective? Some view this approach as an attempt to strike a compromise between industry growth and rigorous rules so that businesses failing to satisfy criteria cannot operate as they ought.

Japan’s Approach to Blockchain Innovation

Fascinatingly, Japan intends to impose fewer rules on non-exchange crypto intermediates, such as blockchain-based gaming apps and self-managed crypto wallets, among stricter rules for crypto exchanges. As we previously reported, the scheme was revealed in December as a means of promoting technical innovation.

While still shielding investors, the suggested regulations seek to streamline compliance for businesses not directly engaged in crypto trading. This implies that Japan is looking for the ideal balance in control rather than outright denying the growth of the crypto sector.

Japan’s Stance on Bitcoin in National Reserves

Beyond laws pertaining to crypto exchanges and middlemen, Japan has also made plain how Bitcoin is handled in national reserves. Citing its great volatility that does not fit the criteria for foreign exchange stability, the government has declined to add Bitcoin to its reserves.

Traditionally, Japan’s foreign exchange reserves have depended more on items regarded as safer, such government bonds and central bank deposits. Including Bitcoin in reserves is seen as dangerous given its volatile price swings and against the stability-oriented economic policies of Japan.