Japan's Financial Services Agency (FSA) has taken a strong stand by urging tech giants Apple and Google to remove five crypto exchanges from their app stores due to lack of compliance. The exchanges in question – KuCoin, Bybit, Bitget, MEXC Global, and LBank Exchange – had failed to register despite previous warnings.

While some of these exchanges were endeavoring to comply in other regions, the FSA's move signifies a crackdown on unregistered platforms. This comes amidst Japan's broader efforts to engage positively with the crypto industry, such as reviewing tax laws and considering a Bitcoin Reserve.

Despite the overall progress in the sector, these exchanges' blatant non-compliance could not be overlooked. None of the companies made any visible efforts to adhere to regulations following the initial warnings. Bybit's attempt to downplay the issue in a brief statement was met with skepticism.

It remains unclear whether these exchanges will seek exceptions for users outside Japan. The lack of foresight in addressing compliance issues is evident, especially considering their efforts to meet regulatory standards in other countries.

The situation serves as a stark reminder to the crypto world: adhere to regulations or face consequences. The outcome for these exchanges in Japan remains uncertain, but this incident adds another chapter to the industry's complex narrative of penalties and bans.