Japan FSA warns against unregistered crypto exchanges over withdrawal-related losses

Japan’s Financial Services Agency urged caution when dealing with unregistered cryptocurrency exchanges and other financial firms, saying it has received numerous reports of harm including refused withdrawals, excessive withdrawal fees and sudden loss of contact with operators. The agency said on its website today that firms offering crypto trading services to Japan residents must register under domestic law. It added authorities cannot verify whether unregistered firms have proper investor protection systems in place, including segregated custody of client assets, bans on misleading advertising and security controls. As of Sept. 30, 27 cryptocurrency exchanges were formally registered in Japan.