Japan Asks Apple & Google to Remove Unregistered Crypto Apps

Highlights:

• Japan has blocked users from downloading five unregistered crypto exchanges from Google and Apple stores.
• The FSA requires all crypto exchanges operating in the country to register before offering services to users.
• Users affected by the move can still access the platforms but can not reinstall or update them.

The Financial Services Agency of Japan ordered Apple and Google to ban downloads of five unregistered cryptocurrency exchange platforms. The directive targets Bybit, KuCoin, Bitget, MEXC, and LBank. The request marks part of Japan’s strict rules that govern digital assets. Apple removed the unregistered cryptocurrency exchange applications from its Japanese App Store yesterday.

Japan’s FSA asked Apple & Google to block downloads of these crypto exchange apps:

Bybit | MEXC | LBank | KuCoin | Bitget

Apple removed them from the App Store in Japan on Feb. 6.

— Satoshi Club (@esatoshiclub) February 7, 2025

The FSA’s recent decision supports its existing stance which demands cryptocurrency exchanges to comply with regulations. Japan stands as one of the most regulated crypto marketplaces among Asian nations.

The government requires every trading platform to follow security guidelines and maintain platform transparency. All cryptocurrency exchanges must obtain FSA approval through registration to serve Japanese users. Cryptocurrency platforms must fulfill these requirements to maintain legal status in Japan.

The safety of investors has prompted authorities to focus more attention on unregistered exchange platforms. Existing users who installed the applications before their removal will maintain access to their apps. Users will have unrestricted access to trading features and full functionality for deposits and withdrawals. New users who want to download the applications are most impacted by the recent restrictions.

Regulatory Crackdown or Investor Protection?

The FSA acts to protect investors in financial markets instead of implementing restrictions against cryptocurrency trading. All trading platforms must follow regulatory requirements to establish transparent and secure operations. Platforms must register with the agency or face regulatory limitations.

Japan takes a restrained approach that differs from Hong Kong’s recent authorization of Ethereum and Bitcoin exchange-traded funds. Japan has chosen to focus on regulation rather than joining other regions in cryptocurrency investments. According to experts, Japan is the leader in developing standards that enforce digital asset trading rules.

Japan decided to ban unregistered cryptocurrency exchanges based on previous failures within the market. Mt. Gox’s collapse in 2014 stands as the biggest exchange failure ever recorded in history. Thousands of investors suffered substantial monetary losses after this incident occurred. Japan strengthened its oversight of cryptocurrency exchanges after this incident to stop future occurrences.

The Financial Services Agency implemented tax reforms that classify cryptocurrencies as regular financial assets. Japan plans to integrate crypto into its financial system through these adopted reforms.

Impact on Users and the Crypto Market

Users who have been operating on the installed apps will continue using them without restrictions. Customers can use the outdated versions but they won’t be able to download new updates or return to the system once the apps are removed. The imposed restriction might drive traders to seek alternative solutions through registered trading platforms.

The Japanese exchanges BitFlyer, Coincheck, and GMO Coin operate within full FSA regulatory compliance and provide their users with secure platform installations. The crackdown has mostly affected foreign crypto exchanges. Users of the platforms are not legally protected, and they might experience obstacles if an issue arises.