Japan's Financial Services Agency (FSA) has raised concerns that crypto exchanges offering both sales desk and exchange services may be directing users toward higher-spread sales desk transactions. During a July 15 meeting with the Japan Virtual and Crypto Assets Exchange Association, regulators noted that platforms acting as counterparties in sales desks earn spreads, while exchange models only charge matching fees.
Citing the customer best-interest obligation effective since November 2024, the FSA plans continued dialogue with operators regarding UI routing design and self-regulatory rules. The agency aims to ensure interface designs do not unfairly prioritize more profitable transaction types over those offering better execution for users.
Japan FSA Concerned Exchanges Are Steering Users to Higher-Spread Sales Desks
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