FSA Targets Sales Desk Practices in Crypto Exchanges

Japan's Financial Services Agency (FSA) has raised concerns over crypto exchanges steering users towards 'sales desks' rather than traditional exchanges. At a meeting with the Japan Virtual and Crypto Assets Exchange Association on July 15, the FSA expressed worries that operators may be encouraging users to trade on sales desks due to easier revenue generation.

Sales desks offer more user-friendly navigation and quicker order execution but tend to have wider spreads compared to traditional exchanges. The FSA is concerned that this may not be in the best interest of customers, who should be able to make informed choices about where to trade.

The agency has tied this issue to the revised Financial Services Provision Act, which took effect in November 2024 and requires financial business operators to conduct business sincerely and fairly towards customers while taking into account their best interests.