Apple removes Bybit, KuCoin, and Bitget from Japan’s App Store, impacting crypto trading apps

Apple has recently taken action by removing several cryptocurrency exchange apps from Japan’s App Store, following requests from local authorities. This decision affects mobile applications for prominent exchanges such as Bybit, KuCoin, Bitget, MEXC, and LBank, which are no longer available for download in Japan. These exchanges had previously been warned by Japan’s Financial Services Agency (FSA) for operating without the necessary registration, which is required for businesses to legally offer crypto services within the country.

While many crypto exchange apps are being removed, not all unlicensed platforms have been impacted. Notably, apps from exchanges like Crypto.com and CoinEx continue to appear in App Store searches when users look for terms like “crypto assets” or “virtual currency.” This suggests that some platforms may still be able to offer their services in Japan, possibly because they are operating under different regulatory frameworks or have complied with Japan’s legal requirements for crypto operations.

In response to the removal of Bybit’s app, the exchange confirmed the news on February 6 through a blog post. Bybit assured its users that the removal would not affect their ability to use the app, as those who had already downloaded it could continue using it without encountering any issues. The platform also emphasized that the removal of the app from the App Store does not impact the overall functionality of its services. According to Bybit, all critical functions, including deposits, withdrawals, and trading, remain fully operational, and customer accounts and assets are securely protected. The exchange apologized for any inconvenience this situation may have caused and reassured users that their services would continue uninterrupted.

The timing of Apple’s removal of these apps is significant, as it follows closely behind recent actions taken by Japan’s Financial Services Agency. The FSA had previously raised concerns about unlicensed crypto operations in the country and pushed for stricter internal audits and oversight of crypto exchanges. In late December, the agency announced its intention to update its “Current Situation and Issues” guidelines to align with international standards for crypto regulations. The move highlights Japan’s ongoing efforts to ensure that cryptocurrency exchanges operate in a safe and regulated environment, protecting investors and maintaining financial stability.

Additionally, in late January, the FSA hosted a roundtable meeting focused on improving internal audits at financial institutions, with participation from the Japan Cryptocurrency Exchange Association. The discussions aimed to address the challenges of monitoring and regulating crypto exchanges more effectively. However, the FSA has not disclosed any specific details about the outcomes of that meeting or what changes might come as a result.

As of now, there has been no public statement from Japanese authorities explaining the decision to remove these specific apps. However, the timing and the regulatory context suggest that Japan is taking a more stringent approach to regulating the crypto industry, particularly in light of the increasing importance of cryptocurrency and blockchain technology globally. The FSA’s actions indicate that Japan is working to strengthen its regulatory framework to keep pace with the rapidly evolving crypto landscape, while ensuring that companies operating within its borders are properly licensed and comply with local laws.