Japan’s Financial Services Agency has issued a warning to KuCoin for soliciting over-the-counter derivatives trading without registration, as regulators intensify scrutiny of crypto platforms.
The watchdog said KuCoin and three other platforms were flagged in March for offering financial instruments services online without approval, with KuCoin specifically targeting Japanese residents.
The FSA has previously warned KuCoin for similar breaches, including a November 2024 notice, and also requested Apple and Google to remove the exchange’s app from stores in Japan.
The latest action comes as Japan prepares to shift crypto oversight from the Payment Services Act to the Financial Instruments and Exchange Act, a move that would expand regulatory authority.
The new framework is expected to tighten reporting requirements for token issuers and exchanges, while strengthening enforcement against unregistered operators.
Japan remains a significant crypto market with more than 12 million accounts, highlighting the importance of regulatory clarity as adoption grows.
Separately, Prime Minister Sanae Takaichi denied any involvement in a memecoin project bearing her name after it briefly reached a $28 million market value before declining.