FSA Warns Unregistered Hong Kong Crypto Exchange Targeting Japan

The Japan Financial Services Agency (FSA) issued a warning letter to Hong Kong-based Izakaya Limited on September 1 for conducting unregistered crypto asset exchange business targeting Japanese residents. The company operates 'IZAKA-YA,' an internet-based service offering crypto asset lending and swap transactions.

The FSA added the company to its list of unregistered operators, citing Section III-1-6(2)② of its Supervisory Guidelines, Volume III (Financial Company Relations), Item 16 (Crypto Asset Exchange Service Providers). The agency noted that IZAKA-YA had been conducting crypto asset exchange business with Japanese residents via the internet.

The matter falls under the jurisdiction of the Crypto Asset and Stablecoin Division and the Crypto Asset Monitoring Office within the FSA's Strategy Development and Management Bureau. The FSA stated that conducting crypto asset exchange business in Japan without registration is illegal, and urged users to verify whether an operator is registered before engaging in transactions.