Regulation
Gate.io Discontinues Services in Japan
Gate.io has announced that it will discontinue all of its services in Japan and that no new accounts will be opened for Japanese residents starting July 22.
The exchange announced the move on Monday and revealed that it will have a compliance process in place for its customers who want to migrate their assets to crypto platforms that are currently compliant with Japanese regulations.
“As one of the world’s leading cryptocurrency exchanges, we are committed to complying with financial regulations in all regions where we operate. Based on this commitment, we regret to inform you that we will be discontinuing our services to Japan,” the exchange said. he wrote.
Gate.io has suspended opening new accounts for users in the country and is taking steps to ensure a smooth transition for customers. This includes launching a program to ensure compliance with Japanese market laws and regulations to support users who want to migrate their cryptocurrencies.
Users can get more details
In the notice to its customers, Gate.io said the exchange would take all “necessary measures to comply with Japanese law.” This includes removing descriptions of Japanese users and the Japanese market on the exchange’s website.
The platform will also communicate more details about the termination of its services and the schedule for the migration of transactions. Gate.io will also provide details about the services and cryptocurrencies it will offer in accordance with the current regulations.
“The details of the suspension of our services and the response and schedule for the transaction migration plan will be implemented in accordance with compliance requests from authorities such as the Financial Services Agency and will be announced in a timely manner,” the Gate.io team said in a post on its website.
Cryptocurrency Exchange Regulation in Japan
Japan requires all cryptocurrency exchanges operating in the country to be registered and approved by the Financial Services Agency (FSA) and the Finance Bureau. In 2023, the FSA warned four major cryptocurrency exchanges for operating illegally in the country.
In recent months, regulators in Japan have taken a more rigorous approach to cryptocurrency regulation, as part of a broader effort to provide greater protection to cryptocurrency investors. Fraud cases, including the major FTX crash that impacted FTX Japan, have necessitated this approach.
In May this year, Gate.io subsidiary Gate.HK withdrew its license application in Hong Kongjoining several other exchanges, including OKX and HTX.