News and Analysis on Cryptocurrencies, Blockchain and Decentralized Finance #JapanFinance

Japan continues to strengthen control over unregulated cryptocurrency exchanges: authorities have asked Apple and Google to remove from the stores the apps of platforms without a license.

This move underscores the country’s commitment to protecting investors and regulating the crypto sector.

The crackdown by Japan on crypto exchanges, problems also for Apple and Google

The Japanese Financial Services Agency (FSA) has intensified measures against unregistered cryptocurrency exchangesasking tech giants to remove the related applications from their digital stores.

This initiative is part of the government’s strategy to ensure that only platforms compliant with regulations can operate in the country.

Regulation in Japan is among the strictest in the world. After the Mt. Gox case, the country adopted a stringent approach to prevent fraud and protect users. Exchanges must obtain a license from the FSA to operate legally.

However, many platforms continue to offer services without authorization, circumventing regulations and putting investors at risk.

The Japanese government has asked Apple and Google to more strictly control the apps available on their stores.

The authorities want to prevent users from downloading unregulated crypto exchange applications, thus reducing the risk of scams and financial losses.

This request raises questions about the responsibility of big tech in monitoring the financial services offered on their platforms.

If Apple and Google accept the requestmany exchange apps could be removed, limiting Japanese users’ access to unauthorized services.

Japan was among the first countries to regulate the cryptocurrency sector. After the collapse of Mt. Gox in 2014which caused the loss of about 850,000 Bitcointhe government introduced strict regulations to prevent similar episodes.

The Japanese authorities consider regulation a key element to ensure the security of the market.

The registered exchanges must comply with strict requirements, including the protection of user funds and compliance with anti-money laundering (AML) regulations.

However, the unregulated exchanges evade these controls, increasing the risk of fraud and hacking.

The consequences for unregulated crypto exchanges

If Apple and Google accept the request of the Japanese government, unregulated crypto exchanges will suffer a hard blow.

The removal from digital stores will limit their ability to attract new users, reducing the trading volume and their presence in the Japanese market.

Many exchanges might be forced to apply for a license to continue operating in the country. However, obtaining approval from the FSA is not simple: the platforms must demonstrate compliance with high standards of security and transparency.

For users, this measure could have a double effect. On one hand, the removal of unauthorized apps will reduce the risks associated with less secure platforms. On the other hand, it could limit access to innovative services offered by international exchanges.

Some investors might look for alternative solutions, such as using VPNs or decentralized platforms (DEX), to bypass restrictions. However, these options involve additional risks, including fewer guarantees in case of technical issues or cyber attacks.

The final decision rests with Apple and Google, who will have to assess whether to comply with the requests of the Japanese government.

Both companies have already taken steps to regulate financial appsbut a massive removal of crypto applications could trigger reactions from the community.

If they accept the request, they might have to apply similar criteria in other countries, increasing the scrutiny on unregulated crypto exchanges globally. On the other hand, if they refuse, Japan might impose stricter restrictions on the use of digital stores in the country.