Japan’s Financial Services Agency has issued warning letters to several cryptocurrency platforms, including KuCoin, for carrying out financial operations without the required registration. The agency published an updated list of entities conducting financial instruments business without authorization, naming KuCoin alongside NeonFX, theoption, and GTCFX. All four received notices in March for soliciting over-the-counter derivatives trading via the internet.
Among the four platforms cited, the FSA specifically identified KuCoin — headquartered in the Seychelles — as actively offering services to residents in Japan, while the remaining three were noted for serving a broader international user base. This is not the first time KuCoin has drawn regulatory scrutiny in Japan. In November 2024, the FSA issued a comparable warning to KuCoin and other exchanges, including Bybit, for providing products and services to Japanese users without proper registration.
The FSA escalated its actions against KuCoin in February 2025, when it requested that Apple and Google suspend downloads of the KuCoin mobile application. The agency has not publicly disclosed whether those requests were fulfilled. KuCoin had not responded to a request for comment at the time of reporting.
Japan has a notably high concentration of cryptocurrency users relative to its population. The FSA reported in February 2025 that the country had more than 12 million crypto accounts among a population of approximately 123 million people. Japan ranked 19th in Chainalysis‘s 2025 Global Crypto Adoption Index, reflecting the country’s significant engagement with digital assets.
The latest enforcement action comes as the FSA prepares to overhaul Japan’s legal framework governing digital assets. The planned shift would move regulation from the country’s Payment Services Act to the Financial Instruments and Exchange Act. This transition is expected to substantially change reporting requirements for initial exchange offerings and token issuers, while also granting regulators broader enforcement powers over unregistered platforms.
Separately, Sanae Takaichi, who has served as Japan’s prime minister since October 2025, publicly denied any connection to a project known as the “Sanae token” earlier this month. The token had grown to a market value of approximately $28 million before declining sharply in value. The FSA was reportedly weighing whether to open a formal investigation into the matter.
Originally reported by CoinTelegraph.
