Japanese regulators warned LBank for operating without registration, citing unknown address and representative, and conducting business with Japanese residents online.
LBank, a cryptocurrency exchange, has been warned by Japanese regulators for operating without proper registration. This incident underscores the ongoing concerns regarding compliance in the swiftly evolving digital asset industry.
According to reports, the Financial Services Authority (FSA) has claimed that LBank Exchange has a “unknown representative” and a “unknown address.” The agency also disclosed that the platform was engaging in commercial activities online with Japanese residents as counterparties.
LBank, which was established in 2015, is a prominent global centralized exchange (CEX). This exchange provides clients with a diverse selection of trading options, including Bitcoin, Ethereum, and other cryptocurrencies.
An X post (formerly Twitter) was used by crypto reporter Colin Wu to share insights. Wu stated in his post that the exchange was warned by the agency for its noncompliance with the authority.
The FSA has also issued alert notices against prominent exchanges such as Bybit Fintech Limited, MEXC Global, Bitget Limited, and Bitforex Limited. This is particularly noteworthy. These entities were operating without registering with the regulators, according to the FSA’s allegations. Consequently, the agency prohibited the use of these platforms in Japan.
LBank announced the listing of Aethir (ATH) on June 12, allowing users to trade the ATH/USDT trading pairs on their platform, despite the fact that it is currently under scrutiny from Japanese regulators.
Aethir is a cutting-edge decentralized cloud computing platform that capitalizes on Graphical Processing Units (GPUs). This action can be interpreted as an effort by LBank to broaden its product line and potentially attract new users.