Japan has been the global leader in the adaption and regulation of cryptocurrencies, recognizing bitcoin and several altcoins as legal currency. While neighbors China and Korea have been combating non-step regulation FUD for the past two months, Japan’s crypto happenings have been in a good way, uneventful. Japan may be more advanced when it comes to adapting and integrating crypto into their mainstream society, but the ever-growing, booming industry is causing the country to revisit and reinenforce regulations.
Japanese law states only registered cryptocurrency exchanges and other related services may conduct business activities in Japan. This includes foreign companies that are not headquartered in Japan. Those who continue to do business with out proper licensing will be investigated, shut down, and criminally charged. Japan’s FSA (Financial Service Agency) has stated the number of illegally operating exchange is unknown and constantly growing and the agency is currently investigating 15 exchanges.
One of the first exchanges the FSA has targeted as operating with out proper registration is the Macau based exchange and ICO agency, Blockchain Laboratory. The FSA have contacted the suspected company several times demanding they halt operations immediately. It appears Blockchain Laboratory has decided to not heed the warnings and continue operations in Japan, prompting the FSA to issue a warning on their official website with threats of criminal prosecution if the Macau exchange does not respond.
The official warning basically states,
Blockchain Laboratory Limited, Represented by Jay Liu, has been issued several warnings to discontinue doing business in Japan since they have not properly completed registration. Blockchain Laboratory’s operations are described as acting as a virtual currency exchange and holding industry related seminars. The FSA have reason to believe based on recruitment and promotional materials that the business has falsified names and business addresses on their registration.
If Blockchain Laboratory fails to respond to the FSA warning, they will be criminally prosecuted for operating a business illegally in Japan.
The FSA has also published a list calling out other businesses suspected of conducting financial instruments business with out proper registration.