On 1 September 2026 Japan's Financial Services Agency (FSA) issued and published a warning against Izakaya Limited (Hong Kong), operator of the crypto lending and wallet service IZAKA-YA, for conducting crypto-asset exchange business with residents of Japan without registration. About a week earlier, on 24 August, the service had suspended transfers and withdrawals for some accounts.
This column sets out the timeline that can be confirmed from the FSA's published document and IZAKA-YA's official notices, explains what a warning to an unregistered operator does and does not mean, and lists what to check before using any overseas crypto service. IZAKA-YA is not listed on this site and nothing here is a recommendation to use it or deposit funds.
What the FSA published on 1 September 2026
The FSA's notice, dated 1 September 2026, is titled "Regarding a party conducting crypto-asset exchange business without registration (Izakaya Limited)". It was issued under the FSA's supervisory guidelines for crypto-asset exchange service providers and states the following.
| Item | Published content |
|---|---|
| Operator | Izakaya Limited (representative: unknown) |
| Address | Room 1701, 17/F, Wai Fung Plaza, 664 Nathan Road, Mongkok, Kowloon, Hong Kong |
| Conduct | Conducting crypto-asset exchange business with residents of Japan as counterparties via the internet |
| Remarks | Operates "IZAKA-YA", which offers crypto-asset trading online |
※ Source: FSA published document (PDF). The document notes that the details are based on information available online and the operator name and address may not be current.
Under Japan's Payment Services Act, anyone who conducts crypto-asset exchange business (buying, selling or intermediating exchanges of crypto assets) with residents of Japan must be registered with the FSA. An operator based overseas is treated the same way if it serves residents of Japan over the internet. The FSA issues warnings to unregistered operators and publishes separate lists of domestic and overseas-based operators on its website.
The FSA warning states that the operator is conducting crypto-asset exchange business without registration. It is not a finding of fraud or misappropriation. At the same time, it means the operator is outside the segregation-of-assets obligations and supervision that apply to registered operators, so users are not protected by the same framework if something goes wrong.
Are IZAKA-YA withdrawals blocked? Timeline from the freeze to the warning (24 August to 2 September)
The events below are taken from IZAKA-YA's official notices and the FSA's publication. Posts about blocked withdrawals appeared on social media from mid-August, but only officially confirmed items are included here.
| Date | Event | Source |
|---|---|---|
| 24 August | IZAKA-YA publishes a notice on transfers, withdrawals and KYC: transfers and withdrawals suspended for some accounts after detecting transactions suspected of illicit inflows or money laundering; KYC made mandatory | IZAKA-YA official notice |
| 27 August | IZAKA-YA publishes a notice on the current status of withdrawals and transfers (updated 2 September): no blanket suspension of all accounts; transfers to users whose checks were completed began on 25 August and continue case by case; no date given for full resumption | IZAKA-YA official notice |
| 1 September | FSA issues and publishes a warning to Izakaya Limited as an unregistered crypto-asset exchange service provider | FSA published document |
※ As of 11 September 2026. IZAKA-YA states that timing and status differ by user and gives no date for a general resumption of withdrawals.
IZAKA-YA's website promoted lending with displayed yields of up to 12% per year on deposited crypto assets, alongside swap, transfer and purchase functions. In late August it also advertised a limited-time campaign displaying a 100% annual rate, so the partial withdrawal freeze and high-yield customer acquisition were running at the same time, as media reports have pointed out.
A yield of 12% or 100% per year can only be sustained if the operator explains where deposited assets are invested and how the return is generated. When no source of returns is disclosed and high yields continue while new deposits are solicited, consider whether earlier depositors are being paid with later depositors' funds.
Five things to check before using an overseas crypto service
Whether an exchange, a wallet or a lending service, checking the following in order at least avoids depositing without knowing the situation.
- Is the operator on the FSA's list of registered crypto-asset exchange service providers? If not, assume it is outside Japan's investor-protection framework (asset segregation, supervision, administrative action)
- Is it on the FSA's list of unregistered operators that received warnings (domestic and overseas)? The lists are updated, so check before you start and periodically afterwards
- Can you confirm the operating entity's name, address and representative on its website? When even the FSA records the representative as unknown, the contact point is hard to verify
- Is the source of the yield explained? If the basis for "earn X% per year just by depositing" (where funds are invested, how returns are generated, the risks) is not stated, assume principal may not be returned
- Deposit a small amount, withdraw it and confirm how long it takes and what the procedure is before increasing the amount. Check withdrawal limits and KYC requirements at the same time
Most overseas exchanges are not registered with the FSA, and that includes the exchanges listed on this site. There is no rule that penalises a resident of Japan for using an overseas exchange, but protection of your assets depends on each exchange's terms and custody arrangements, such as proof of reserves. How to check the operating entity and custody is covered in the beginner guide on assessing an exchange's safety.
What to do now if you cannot withdraw from IZAKA-YA
If you have assets in IZAKA-YA and cannot withdraw them, there is little this site can state with certainty, but the public contact points and the way to keep records are the same in any case.
- Save screenshots with dates of the operator's notices, your withdrawal request screens, transaction history and deposit/withdrawal transaction IDs
- Consult the contact points listed on the FSA website, the Consumer Hotline (188) and the consultation desk of your nearest police station, with your records ready
- Do not respond to third parties offering to "process your withdrawal" or "recover your funds"; the FSA warns that follow-on solicitations tend to increase after such incidents
- Do not accept offers that require additional deposits or transferring assets from other services as a condition
This column organises the facts that can be confirmed from the FSA's published document and IZAKA-YA's official notices as of 11 September 2026. This site cannot judge whether deposited assets will be returned or the operator's intentions. Check the FSA's publications and the operator's official notices for the latest status.
Frequently asked questions
Q. Are IZAKA-YA withdrawals blocked?
A. Since 24 August 2026 transfers and withdrawals have been suspended for some accounts. In its 27 August notice (updated 2 September) the operator says there is no blanket suspension and that transfers to verified users are processed in turn, but gives no date for a general resumption. If you cannot withdraw, save dated records of the notices, your requests and your transaction history, and consult the contact points on the FSA website or the Consumer Hotline (188).
Q. When did Japan's FSA warn IZAKA-YA?
A. On 1 September 2026. The FSA issued a warning to the operator, Izakaya Limited (Hong Kong, representative unknown), for conducting crypto-asset exchange business with residents of Japan via the internet without registration, and published it on its website the same day.
Q. Does the FSA warning mean IZAKA-YA is a fraud?
A. No. The warning publishes the fact that the operator conducts crypto-asset exchange business without FSA registration. It is not a finding of fraud or misappropriation, but it does mean the operator is outside the asset-segregation obligations and supervision that apply to registered operators.
Q. When did the IZAKA-YA withdrawal freeze start?
A. On 24 August 2026 IZAKA-YA announced that it had suspended transfers and withdrawals for some accounts after detecting transactions suspected of illicit inflows or money laundering. Its 27 August notice (updated 2 September) says there is no blanket suspension and that transfers to verified users are being processed in turn, with no date for a general resumption.
Q. Where can I check whether an overseas exchange or wallet is registered in Japan?
A. The FSA's crypto-asset page lists registered crypto-asset exchange service providers and, separately, unregistered domestic and overseas operators that have received warnings. Check before you start using a service and periodically while you use it.
Q. Are the exchanges listed on this site, such as MEXC and BingX, registered with the FSA?
A. No. The overseas exchanges listed on this site are not registered with the FSA as crypto-asset exchange service providers. Using an overseas exchange is not itself penalised, but you should understand that you are outside Japan's investor-protection framework and check each operator's entity, terms and custody arrangements before deciding.
Sources
- FSA | Warning to an unregistered crypto-asset exchange service provider (Izakaya Limited), 1 September 2026 (PDF, Japanese) →
- FSA | List of unregistered overseas operators that received warnings (PDF, Japanese) →
- Financial Services Agency (Japan) | Crypto assets: registered operators, warnings to unregistered operators →
- IZAKA-YA | Notice on the current status of withdrawals and transfers (27 August 2026, updated 2 September; Japanese) →
- IZAKA-YA official site (displayed lending rates, checked 11 September 2026; Japanese) →
FX Textbook is an independent information site, not an exchange or a provider of personal investment advice. Crypto-asset trading involves risk: price volatility, liquidation of leveraged positions, transfer mistakes and the operational risk of exchanges and service providers can cause you to lose some or all of your invested capital. No result is guaranteed.
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