- The Japanese Financial Services Agency issued a warning against LBank Exchange for allegedly engaging in unlicensed bitcoin trading.
- This comes after earlier alerts to other exchanges sent late last year, indicating continued regulatory monitoring in Japan.
- In an effort to better safeguard investors, the FSA is working to strengthen security protocols on exchanges.
The foreign cryptocurrency exchange LBank Exchange has received a strong warning from the Japanese Financial Services Agency (FSA) stating that it is not properly registered to provide cryptocurrency trading services in Japan.
Japan’s FSA Issues A Warning About LBank Exchange
The LBank Exchange warning stems from the exchange’s operations, which involve trading cryptocurrency assets online and are accessible to Japanese citizens, out of an undisclosed location through an unidentified representative.
In order to protect investors and stop further cyber intrusions, the FSA intends to extend the scope of its inspections to include a number of additional cryptocurrency exchanges in the nation.
The FSA’s prior actions against many other companies last year, such as Bybit Fintech Limited, MEXC Global, Bitget Limited, and Bitforex Limited, all received identical warnings for operating without registration for cryptocurrency trading, are followed by the LBank Exchange warning.
Based on CoinGecko data, LBank Exchange is presently ranked 56th out of small and medium-sized exchanges in terms of 24-hour spot trading volume.
Tightening Security After Japan’s Coincheck Hack
The FSA’s action coincides with increased Japanese government surveillance of cryptocurrency exchanges, which has been brought on by prior security incidents including the well-publicized Coincheck hack in January.
The FSA performed on-site inspections after Coincheck’s NEM tokens valued at around $531 million were stolen. The purpose of the inspections was to evaluate the exchange’s security protocols and financial capacity to reimburse impacted users.
In order to protect investors and stop further cyber intrusions, the FSA intends to extend the scope of its inspections to include a number of additional cryptocurrency exchanges in the nation.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
