#政策

Japan has taken action to ban some cryptocurrency exchanges. Everyone is asking what you think of Japan's official ban on exchanges such as Bybit, KuCoin, MEXC, LBank and Bitget.

Currently, the download information of these exchanges can no longer be found in the Japanese Apple Store, and other platforms such as the Google Store will follow suit. Some Japanese bloggers are also urgently deleting tweets that mention them.

In fact, this situation has been foreshadowed. Bybit and other exchanges initially became famous by focusing on the Japanese and Korean contract markets. Local young people are keen to leverage and invest in volatile assets. In addition, these exchanges have rich currencies, various rebates and local promotion activities, which attracted a large number of Japanese users. However, in the process, problems also followed.

On the one hand, many investors filed complaints due to huge losses;

On the other hand, there are issues such as tax evasion in deposits and withdrawals, and the company has been repeatedly complained about by compliant exchanges.

After all, compliant exchanges invest a lot of money in compliance construction, while these non-compliant exchanges occupy a large market share effortlessly.

In addition, many exchanges have recently withdrawn from the US and European markets due to regulatory reasons. Competition in the Asia-Pacific region has become increasingly fierce, and overly high-profile behavior has also attracted the attention of regulators.

Previously, South Korea introduced the most stringent crypto bill, forcing many exchanges to withdraw from the South Korean market, leaving only local exchanges such as Upbit and Bithumb, allowing regulatory authorities to keep track of user information and deposit and withdrawal tax situations at any time. The biggest problem with non-compliant exchanges is that users generally evade taxes, and exchanges themselves do not pay operating income taxes to the government after making profits, which brings great difficulties to supervision.

After the Japanese Financial Services Agency sent a letter last year, these exchanges neither responded nor withdrew, and continued to expand their markets in Japan, which led to the regulators taking more radical actions this time.

So, what will be the result of this action?

Currently, the five exchanges that have been banned in Japan are Bybit, KuCoin, MEXC, LBank and Bitget, which we are familiar with.

Binance Japan, OK Japan, Backpack, etc., because they were involved in compliance in advance and actively cooperated with supervision, were not only not affected, but also may have obtained the user share of these exchanges that withdrew. Many project parties and secondary trading teams in Japan are not included in the scope of this ban because they do not operate in the Japanese market or operate in the form of offshore operations plus Japanese R&D entities, and are still continuing to do business in Tokyo.

In the past two years, Binance, OSL and others have successfully landed in Japan by acquiring licensed companies.

These strategies have proven to be very forward-looking. Although they cannot provide users with a large number of altcoin transactions and high leverage services under the compliance framework, they have transformed into asset management companies with their global brand and reputation, providing asset management and financial services to Japanese family offices and consortiums. In the latest fund of a16z, 5% of LP investors come from Japanese consortium companies, such as NTT, Japan's largest telecommunications group, and Tokio Marine Nichido, the largest private insurance group. The latest financial report released by the financial consortium SBI shows that the revenue of the crypto asset business reached 62.8 billion yen, a year-on-year increase of 103%, of which Ripple XRP and its compliant exchanges' user transactions and asset management income contributed greatly.

In short, the Japanese market is still active, but it will be difficult to see the above five exchanges in the future unless they are willing to cooperate with supervision and re-enter the Japanese market in a licensed manner.