Japan has decided to crack down on some crypto exchange apps, and let me tell you, it's a big deal. They told Apple to remove some of the most popular apps to buy cryptocurrency from its App Store. The reason? Well, these exchanges were operating without a license from Japan's Financial Services Agency (FSA).

A Changing Landscape

In the current state of affairs, the apps to buy and sell crypto in Japan are in a bit of a scramble. Bybit, KuCoin, and Bitget are all gone. The FSA has really ramped up its game, and it's clear they want to make sure everyone is playing by the rules. But, interestingly enough, not every unlicensed exchange has been kicked out. Crypto.com and CoinEx are still around, although they’re not exactly free from scrutiny. This makes you wonder about the consistency of regulations and how they apply to different players in the market.

What’s Behind the Removal?

The removals stem from Japan's FSA enforcing regulations that require exchanges to register and comply with strict guidelines. The FSA's actions are part of a broader effort to enhance security and compliance within the cryptocurrency market. The agency has warned exchanges about operating without proper registration, which includes adhering to Anti-Money Laundering (AML) and Know Your Customer (KYC) standards. As a result, the removal of these apps serves as a clear message to the industry about the importance of regulatory compliance.

Implications for Users

What does this mean for users? Well, it means limited options for trading and purchasing digital assets. If you were used to Bybit, it's time to look for a new home. Alternatives might be out there, but they may come with higher fees or worse trading conditions. Plus, the regulatory uncertainty might scare off new users who were thinking about getting into crypto.

Adapting to the New Normal

Exchanges need to get their act together and adapt to the new regulatory landscape. They have to register with the FSA and comply with the Payment Services Act (PSA) and the Financial Instruments and Exchange Act (FIEA). It's a lot, but it’s what needs to be done.

They should also implement robust AML and Counter-Terrorism Financing (CFT) procedures. From April 2022, exchanges are required to enforce the FATF’s Travel Rule, which mandates sharing personally identifiable information (PII) of customers during transactions. And on top of all that, they need to have a solid cybersecurity strategy in place.

In conclusion, Japan's regulatory actions are a significant shift in the availability of cryptocurrency exchange apps. With the FSA enforcing compliance, it's going to be a tough time for users and exchanges alike.