Apple Removes Bybit, KuCoin, and Bitget from Japan’s App Store Following FSA Warning

Apple has quietly removed multiple cryptocurrency exchange apps from Japan’s App Store following a request from the country’s Financial Services Agency (FSA). 

The affected applications include Bybit, KuCoin, Bitget, MEXC, and LBank, all of which had previously been warned by the FSA for operating without registration.

The decision follows warning letters issued by the FSA in 2023, cautioning several overseas exchanges against conducting business in Japan without proper authorization. 

本日、金融庁より無登録で暗号資産交換業を行う者（KuCoin、bitcastle LLC、Bybit Fintech Limited、MEXC Global、Bitget Limited）に対して、事務ガイドラインに基づき、警告書を発出し、金融庁ウェブサイトにおいても公表しました。#金融庁

— 金融庁 (@fsa_JAPAN) November 28, 2024

FSA’s Regulatory Crackdown Intensifies: What Is Japan Up To?

The removal of these applications from Apple’s App Store follows a direct request from the FSA. 

According to reports from Nikkei and Yahoo Japan, the agency formally asked Apple and Google to prevent Japanese users from downloading the apps. The agency cited concerns over investor protection and compliance with local laws.

Apple responded by delisting the applications on February 6, while Google has yet to confirm whether it will take similar action. This marks the first time the FSA has formally requested the suspension of app downloads.

Notably, Bitcastle—another exchange that received an FSA warning—remains available on the App Store, possibly because it is listed under a different name as a “cryptocurrency wallet.”

Despite this regulatory crackdown, some unlicensed exchanges, such as Crypto.com and CoinEx, remain available for download in Japan. 

Additionally, Gate.io, which recently acquired Japanese exchange Coin Master, continues to be listed on the App Store. 

However, delisting these major platforms suggests that Japanese regulators are increasingly scrutinizing the cryptocurrency industry to ensure compliance with local laws.

Japan has long maintained strict oversight over its cryptocurrency industry, implementing stringent registration requirements for exchanges operating in the country. 

The FSA has consistently warned overseas platforms against providing services without a license. 

The agency’s recent actions suggest a more aggressive approach to ensuring that only registered and compliant exchanges can operate within the Japanese market.

Implications for Crypto Exchanges and Japanese Investors

The FSA’s move to block downloads of unregistered exchange apps is part of a broader effort to regulate the cryptocurrency sector and align Japan’s financial policies with international standards. 

While some industry experts argue that the move is not an outright crackdown on crypto investing, it also calls for exchanges to legislate their operation in Japan.

One affected exchange, Bybit, issued a statement reassuring users that removing its app from the App Store would not impact its existing services.

The company stated that users who had already downloaded the app could continue using it without interruption. 

Bybit said:

“Please note that this does not affect Bybit’s services in any way. We continue to serve Japanese-speaking customers, and all functions, including deposits, withdrawals, and trading, remain fully operational. All customer accounts and assets are securely protected.”

The regulatory crackdown comes at a time when Japan is reassessing its financial oversight mechanisms for digital assets. 

In late December, the FSA announced plans to update its guidelines to enhance regulatory compliance and improve internal audits of crypto exchanges. 

The agency also hosted a roundtable discussion with the Japan Cryptocurrency Exchange Association in January, although specific details from the meeting were not disclosed.

Japan’s cautious approach contrasts with that of other Asian financial hubs, such as Hong Kong, which has approved spot Bitcoin and Ether ETFs.

However, Japan’s history with cryptocurrency regulation—shaped in part by the collapse of Mt. Gox in 2014—has made the country more conservative in its stance toward digital asset trading.