Japanese watchdog issues warning to cryptocurrency derivatives exchange Bybit

Bybit, headquartered in Singapore, is the world’s fifth largest cryptocurrency derivative exchange According to the official warning, based on transaction volume, it is said that unregistered encryption services have been operated in Japan.

Japan Financial Services Agency release A formal warning letter to Bybit stating that the company is not registered to operate encryption services in the country.

Norbert Gehrke, the founder and representative director of Tokyo Fintech, said that the warning was made in response to the marketing campaign of Bybit, which reportedly targeted Japanese investors.

“This kind of public condemnation of operating unregistered businesses has been around for some time, so it can be considered that the FSA has witnessed Bybit actively marketing to Japanese investors, which goes beyond the common violation of displaying its website in Japanese without blocking Japanese IP. Behavior. Address”, Gehrke write In the blog post.

Gehrke claimed that Bybit’s Japanese website did not mention that local investors were not allowed to access the platform, and that it would not prevent local IPs from accessing the platform. He pointed out that other exchanges, such as Panama-based crypto derivatives exchange Deribit, have blocked IP addresses in Japan.

According to a notice on Deribit’s Nippon Telegraph channel, Deribit Restricted Japanese users will visit its platform on May 1, 2020.

Bybit and FSA did not immediately respond to Cointelegraph’s request for comment.

March, Bybit Suspension of services for UK customers After the Financial Conduct Authority completely banned retail cryptocurrency derivatives trading.