Japan's cryptocurrency industry witnessed significant developments this week, as reported by Japan Web3 Weekly. Key updates include regulatory crackdowns on unregistered exchanges, real estate adopting crypto payments, and SBI Holdings' staggering profit growth.
FSA Cracks Down on Five Unregistered Crypto Exchanges, Requests App Removal
The Financial Services Agency (FSA) of Japan escalated its regulatory measures by targeting five unregistered overseas crypto exchanges, demanding Apple and Google remove their apps from their respective stores.
Affected Exchanges:
- Bitget
- MEXC Global
- LBank
- Bybit Exchange
- BitTrade (BigONE)
Under Japan’s Payment Services Act, all crypto exchanges must obtain FSA approval to operate. Despite repeated warnings, these platforms continued offering services without licensing, prompting the FSA’s intervention.
Current Status:
- Apple complied on February 6, removing the apps from the App Store.
- Google’s response remains pending.
- Existing users can still access these platforms via web browsers, raising speculation about potential website blocks in the future.
Market Reactions:
- Traders are shifting to self-custody wallets or decentralized exchanges (DEXs).
- Local compliant exchanges like bitFlyer, GMO Coin, and SBI VC Trade may see increased adoption.
- Hong Kong’s OSL Group and emerging platform Backpack are eyeing Japan’s market, potentially reshaping the landscape.
👉 Explore secure crypto trading alternatives
Japanese Real Estate Now Accepts Crypto Payments for International Buyers
Open House Group, a major real estate firm, announced it will accept Bitcoin (BTC) and Ethereum (ETH) for property transactions, targeting international investors.
Why Crypto in Real Estate?
- Lower Costs: Cross-border payments avoid hefty bank fees.
- Faster Settlements: Transactions complete in minutes versus days.
- Strategic Move: Open House has supported blockchain adoption since 2022, including Lightning Network integration.
Implications:
This decision could accelerate institutional investment in Japan’s property market and encourage broader crypto adoption in traditional finance.
SBI Holdings’ Crypto Profits Soar 786%, Dominating Market Share
SBI Holdings, a financial giant, reported a 786% year-over-year profit surge in Q3 2025, with crypto-related revenues hitting $420 million.
Drivers of Growth:
- BTC Price Rally: Boosted trading volumes and fee income.
- Exchange Performance: SBI VC Trade and B2B2C platforms outperformed competitors.
- Market Consolidation: Acquired clients from defunct exchanges like DMM Bitcoin.
Market Trends:
- SBI emerges as a Web3 leader, expanding its ecosystem.
- Institutional inflows signal crypto’s mainstream integration.
- Tighter regulations favor compliant platforms like SBI VC Trade.
FAQ Section
1. Why did the FSA ban these exchanges?
The FSA enforces strict licensing rules to protect investors. Unregistered platforms operating illegally were flagged for non-compliance.
2. Can I still trade on banned exchanges?
Yes, but only via web browsers. New downloads are blocked, and future restrictions (e.g., IP blocks) are possible.
3. How does crypto benefit real estate transactions?
Crypto reduces fees, speeds up settlements, and appeals to global buyers seeking alternative payment methods.
4. What’s driving SBI’s crypto success?
A combination of bullish markets, strategic acquisitions, and strong demand for regulated services.
👉 Learn about Japan’s top crypto platforms
Risk Disclaimer
Cryptocurrency investments carry high volatility and risk. Capital loss is possible. Assess risks carefully before investing.