MEXC is a global cryptocurrency exchange. It has over 7 million users in over 200 countries around the world. There are many Japanese users among them, but MEXC is not registered with the Japanese Financial Services Agency. We will solve the doubts as to whether this is illegal and why it is unregistered.
Is unregistered illegal?
It is not illegal for Japanese to use foreign virtual currency exchanges. Because there is no law prohibiting its use. Although MEXC is not licensed by the Japanese Financial Services Agency, its use is not illegal. It is illegal if the virtual currency exchange conducts business activities in Japan without registration. In this case, it would be considered illegal. When Japanese users use foreign exchanges, the users themselves will not be punished if they use them at their own risk.
Reason why MEXC is unregistered
As introduced in the article below, MEXC has obtained licenses in the United States and Canada, but not in Japan. There are reasons for this, including: You can trade coins handled by Binance, Bybit, etc. You can check the list of officially listed investment stocks. You can also see prices, latest information, charts, etc. Information is also published on Twitter and the Internet.
Leverage regulation
In order to obtain permission from the Japanese Financial Services Agency, we must implement leverage regulations. Japan is limited to 25x, and MEXC currently has a maximum leverage of 200x, so limiting this would make the service very unattractive from the user’s point of view. With restrictions, there is a risk that users will leave.
Zero cut system
It will not be possible to adopt a zero cut system in order to be permitted by the Japanese Financial Services Agency. The zero cut system is a system in which the exchange compensates for the negative amount if it becomes negative more than the principal. This means that users do not have the risk of incurring debt. This is a great advantage from the user’s point of view, but if we were to obtain permission from the Japanese Financial Services Agency, we would have to abandon this system.
Head office is not in Japan
MEXC is based in Singapore and is a virtual currency exchange that operates around the world. Therefore, Japan is one of our business bases, but by no means all of our business bases. For that reason, since we are moving mainly in Singapore, it is true that there is a hidden side of the operation itself that is very strict if it conforms to the laws of all countries.
Cryptocurrency exchanges withdrawing from Japan
Japan is a country with relatively strict laws and regulations, so many virtual currency exchanges have decided to withdraw from Japan. The actual exchange will be explained below, but if you dare to match Japan, it seems wise to choose the trader’s merit. As a matter of fact, from a trader’s point of view, there is no doubt that the zero cut system and high leverage are quite delicious, and many users are registered with MEXC for that reason.
Cryptocurrency exchanges withdrawing from Japan
Currently, Japanese users are also registered with MEXC, but I do not know what will happen in the future. This is because the reality is that major exchanges are gradually withdrawing from Japan. The following exchanges fall into this category.
Binance
Binance, one of the world’s top cryptocurrency exchanges, has decided to withdraw from Japan. The reason is that I received a warning from the Japanese Financial Services Agency. As a result, Japanese users are currently unable to register on Binance, and are refusing to register themselves. Binance announced the acquisition of all shares of Sakura Exchange Bitcoin (SEBC), a crypto asset brokerage business in Japan. Binance now has another way to enter the Japanese market.
BitMEX
Like Binance, BitMEX, one of the world’s top cryptocurrency exchanges, received a warning from the Financial Services Agency. After 2020, Japanese users will not be able to open new accounts. BitMEX already announced its withdrawal from Japan several years ago. The exchange decided to withdraw after considering Japanese law.
CoinBase
CoinBase is one of the most popular cryptocurrency exchanges in the United States. We have decided to withdraw from Japan in 2023. The cryptocurrency exchange service is provided under the strict regulations of the Financial Services Agency, and it is in the form of complying with the laws of the country. New Japanese users cannot register, and existing users can withdraw fiat currency and crypto assets. MUFG Bank, a major bank in Japan, participated in Coinbase as a partner and cooperated with it, but unfortunately it was withdrawn.
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