FSA Warns Izakaya Limited Over Unregistered Crypto Exchange Activities
The Japanese Financial Services Agency (FSA) has issued a warning to Izakaya Limited, the company behind the crypto lending wallet service IZAKA-YA. The FSA alleges that Izakaya Limited engaged in unregistered crypto asset exchange activities on the internet, targeting Japanese residents.
According to the FSA's warning document, Izakaya Limited did not register its business with the agency and conducted crypto exchanges through its online platform, IZAKA-YA. The company is based in Hong Kong and has been operating since 2023, when it launched IZAKA-YA as a lending service with rates up to 12% per year.
In August, users began complaining on social media about being unable to withdraw their funds from IZAKA-YA. The company responded by announcing that some accounts would be temporarily halted due to suspected money laundering and unauthorized transactions. However, they also extended a campaign offering 150% annual returns for customers who transferred assets from other platforms.
The FSA's warning is the latest in a series of actions against unregistered crypto exchanges in Japan. JPYC CEO Noritaka Okabe has called on users to exercise caution when dealing with IZAKA-YA, stating that some users have been unable to recover their funds.