Japan’s Financial Services Agency issued a warning on Sept. 1 to Hong Kong-based Izakaya Limited for allegedly conducting crypto-asset exchange business without registration. The company operates IZAKA-YA, a crypto lending and swap service that offered services to Japanese residents over the internet. The FSA added the company to its list of unregistered operators citing Section III-1-6(2)② of the Supervisory Guidelines. On Aug. 24, IZAKA-YA temporarily suspended transfers and withdrawals for certain accounts after flagging suspected illicit transactions and required know-your-customer verification for all users while continuing a high-yield campaign. A JPYC executive provided the FSA with information on August 24. The warning reflects the regulatory stance during a transitional period as the amended Financial Instruments and Exchange Act, enacted in July 2026, brings lending businesses under regulation.