Japan’s Watchdog Targets Crypto—Apple and Google Respond

Japan’s latest regulatory crackdown has targeted five major crypto exchanges—Bybit, MEXC, Bitget, KuCoin, and LBank—all of which lack official registration in the country. Apple, after a week of hesitation, finally complied with government directives, removing the apps from its Japanese store on February 6, 2025. The move follows Japan’s broader initiative to regulate digital assets as traditional financial instruments, imposing tax obligations and tighter oversight.

The decision has sparked controversy within the crypto space, with critics viewing it as excessive control over the market. However, officials argue that this is about safeguarding local investors from unregulated platforms, not outlawing crypto itself. Some international analysts share this view, suggesting that Japan is striving for a more structured and secure digital asset landscape.

This isn’t about shutting down crypto investing. It’s about drawing a line in the sand and saying, “If you want to play in our market, you’ve got to play by our rules.” And honestly, I think that’s exactly the right move,

Anndy Lian, author and intergovernmental blockchain expert, stated.

Japan’s cautious stance on crypto regulation can be traced back to one defining event—the dramatic downfall of Mt. Gox. Once a dominant exchange headquartered in Tokyo, the platform was crippled by a 2014 hack that wiped out approximately $9.4 billion in investor funds. The aftermath reshaped Japan’s financial policies, leading it to pioneer some of the earliest digital asset regulations. While Mt. Gox has only recently started reimbursing affected users, the government’s proactive response set a global precedent for crypto oversight.

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