Japanese Watchdog Warns Crypto Firm Over Unlicensed Operation

Japan's financial watchdog has stepped up its efforts to scrutinize foreign cryptocurrency services that target domestic investors without a license.

According to an official warning published by the Japan's Finance Service Agency (FSA) on Feb. 13, the regulator said a Macau-based cryptocurrency service firm named Blockchain Laboratory, headed by Jay Liu, has been offering unregistered services related to cryptocurrency trading and initial coin offerings (ICO).

According to the firm's Japanese-language , the company's business involves cryptocurrency tutorials and consulting, cryptocurrency sales and ICO agency services and related publicity work.

The Kantou region office of Japan's Finance Ministry has also published a statement cautioning that the firm failed to register under the Financial Instruments and Exchange Act while raising funds, making private offerings and facilitating ICOs in Japan.

According to the FSA statement, the agency had already warned the firm several times prior to making the statement public regarding its allegedly illegal conduct. The firm has yet to respond, it said. As as result, the agency is increasing its efforts to warn domestic investors over the "possibility of falsehood" in Blockchain Laboratory's operations.

The news marks the first time that regulators in Japan have issued a warning over a cryptocurrency services company since April last year, when the country legalized bitcoin as a payment method.

Japanese yen and bitcoin image via Shutterstock

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Wolfie Zhao

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.