Japan’s Financial Services Agency (FSA) expressed renewed concerns from a user-protection standpoint at a July 15 meeting with the Japan Virtual and Crypto Assets Exchange Association, noting that crypto asset exchange service providers may be steering users toward transactions on “sales desks.” The agency’s position was disclosed in materials published on July 17.

Crypto asset trading services come in two forms: “sales desks,” where the exchange operator acts as the counterparty to orders, and “exchanges,” where orders from users are matched against each other. Sales desks offer intuitive screen navigation and easier order execution, but tend to have wider spreads—the difference between bid and ask prices—compared to exchanges.

At…