- The global crypto clampdown continues to unfold as Japan has become the latest country to take action against its growing cryptocurrency industry by issuing warning letters to several foreign crypto exchanges informing them that they have been operating in the country without the proper registration.
The regulations in question were first introduced in 2020 and require all cryptocurrency exchanges to register with the agency and obtain a license in order to operate in Japan. The warning from Japan is just the latest in a growing list of Binance’s woes after authorities in the U.S. sued the exchange and its founder Changpeng “CZ” Zhao for violating U.S. securities laws.
While many exchanges have chosen to work with regulators in an effort to continue providing services in certain jurisdictions, others have opted to close up shop and focus on more welcoming governments. Both Coinbase and Kraken, two of the largest exchanges in the U.S., have closed their operations in Japan due to challenging market conditions and the need to cut expenses and refocus their efforts.