Japan's Financial Services Agency (FSA) has issued a formal warning to LBank Exchange, a cryptocurrency trading platform, for operating without registration in the country. The FSA has strict regulations in place for cryptocurrency exchanges, requiring them to register and obtain a license to operate in Japan. LBank Exchange, which offers Japanese yen (JPY) pairings, has been accused of targeting Japanese residents without proper registration.

The FSA's warning is part of a broader crackdown on overseas cryptocurrency exchanges that target Japanese customers without complying with the country's regulations. In recent years, the FSA has issued similar warnings to other exchanges, including Binance, Bybit, MEXC Global, Bitget, and Bitforex. The agency has also tightened its scrutiny of overseas platforms, requiring them to either stop targeting Japanese customers or apply for a license.

The warning to LBank Exchange comes as Japan's cryptocurrency market continues to grow, despite strict regulations. The country has experienced several high-profile cryptocurrency exchange hacks, including the infamous Mt. Gox collapse in 2014 and the Coincheck hack in 2018. These incidents led to the establishment of comprehensive regulations for domestic cryptocurrency exchanges.

LBank Exchange, which was launched in 2015, claims to have offices in several countries, including the United States, the UAE, the British Virgin Islands, Canada, Lithuania, and Australia. The exchange supports over 50 fiat currencies, including the Japanese yen. However, the FSA has raised questions about the platform's lack of a verifiable address and an identified CEO.

The warning to LBank Exchange serves as a reminder to overseas cryptocurrency exchanges to comply with Japanese regulations. The FSA's strict oversight of the cryptocurrency market aims to protect Japanese investors and maintain the integrity of the financial system. As the cryptocurrency market continues to evolve, it is likely that regulators around the world will increasingly scrutinize overseas exchanges that target their residents.