Japan’s Financial Services Agency (FSA) ordered Apple and Google to block five unregistered overseas crypto exchanges from their app stores in the country.
The exchanges targeted by the order are Bybit, MEXC Global, LBank Exchange, KuCoin, and Bitget, according to a report by Nikkei. The FSA issued the warning under the Payment Services Act and publicly named the companies for failing to comply with regulatory requirements.
Apple reportedly removed the apps from its Japanese App Store on Thursday in response to the request, following repeated warnings from the regulator. Google has yet to take action, according to Nikkei. However, the restriction only applies to future downloads — users who have already installed the apps will still be able to access them.
Japan issued similar warnings in the past, beginning in 2018, but unregistered exchanges continued to operate within the country, often bypassing regulatory oversight by serving customers across borders.
Japan applies one of the strictest regulatory frameworks for cryptocurrencies in the Asia-Pacific region. The FSA pushed financial institutions to strengthen monitoring of “unlawful” transfers to crypto exchange providers to ensure compliance with the Payment Services Act.
While South Korea leads in retail trading volume, Japan focused on enterprise participation in crypto. Major corporations including Nomura, SBI, SMBC, Sony, and DMM have taken active roles in digital asset development.
Japan’s three largest banks — MUFG, SMBC, and Mizuho — are also conducting trials for a cross-border stablecoin transfer platform, designed to enable faster international settlements for enterprises.
Despite strong institutional involvement, Japan’s Web3 venture capital sector remains relatively small, with startups typically raising between $1 million and $3 million, far below the larger funding rounds seen in other global markets.
Meanwhile, Hong Kong-based OSL Group recently acquired Japanese crypto exchange CoinBest, renaming it OSL Japan, as part of its global expansion strategy.
