Japanese watchdog issues warning to crypto derivatives exchange Bybit

On June 20, 2018, the Tokyo District Court ordered BIT BAY to halt trading on its platform, citing that it was illegally offering cryptocurrency derivatives. The court order came after Tokyo-based exchange operator Bybit was fined 430,000 yen ($3,240) for offering binary options trading, which is prohibited under Japanese law. The court order was issued after an investigation by the Japanese Financial Services Agency (FSA) which found BIT BAY to be operating as a non-licensed crypto derivatives exchange.

The Japan Financial Services Agency (JFSA) has recently issued an official warning to the cryptocurrency derivatives trading platform Bybit. According to the official, the platform is not registered with the agency and violated the rules in the three months leading to the end of March. The JFSA states that the exchange is a money service business (MSB).

A warning is issued to a cryptocurrency derivatives exchange after being accused of manipulating prices of digital assets.

Singapore-based Bybit, the world’s fifth-largest cryptocurrency derivatives exchange by trading volume, has reportedly offered unregistered cryptocurrency services in Japan, according to an official warning. Japan’s Financial Services Agency has sent an official warning letter to Bybit, stating that the company is not registered to trade cryptocurrencies in the country. According to Norbert Gehrke, founder and deputy director of Tokyo FinTech, the warning is in response to Bybit’s marketing campaign, which was reportedly aimed at Japanese investors. It has been a long time since there has been such a public reprimand for operating an unregistered business. So we can assume that the FSA witnessed Bybit’s aggressive marketing to Japanese investors, beyond the usual offences such as presenting its website in Japanese and failing to block Japanese IP addresses, Gerke wrote on his blog. Gehrke says Bybit’s Japanese website does not mention that local investors are excluded from the platform and that it does not block access from local IP addresses. He noted that other exchanges, such as the Panamanian cryptovalue derivatives exchange Deribit, have blocked Japan-based IP addresses. According to a post on Deribit’s Japanese Telegram channel, Deribit has suspended Japanese users’ access to its platform on the 1st. May 2020 limited. Bybit and the FSA did not immediately respond to Cointelegraph’s request for comment. In March, Bybit suspended its UK customer service after the Financial Conduct Authority imposed a blanket ban on retail trading of cryptocurrency derivatives.The Japanese Financial Services Agency (FSA) has issued a warning to cryptocurrency derivatives exchange Bybit, after concluding that it failed to meet regulatory standards.. Read more about bybit down and let us know what you think.

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