Regulation
Gate.io Halts Services to Japanese Customers Due to Regulatory Pressure
- I cease operations in Japan due to FSA regulatory compliance demands.
- The exchange will help Japanese customers migrate to compliant exchanges.
- There is no specific date for io to close in Japan, as it will remove Japanese content.
Gate.io, one of the leading cryptocurrency exchanges, has announced will cease operations for Japanese customers due to regulatory concerns.
The move follows compliance requests from Japan’s Financial Services Agency (FSA). The Cayman Islands-based exchange will also stop opening new accounts for Japanese users with immediate effect.
Strict Regulations for Cryptocurrency Trading in Japan
Gate.io’s move is driven by Japan’s stringent regulations on cryptocurrency trading. Despite the country being an international cryptocurrency hub and one of the first to legalize cryptocurrency trading, the regulatory landscape remains stringent.
The Payment Services Act (PSA) requires exchanges to register with the FSA and comply with anti-money laundering (AML) regulations and conduct thorough customer identity checks.
Gate.io will help interested customers move their belongings
Gate.io has stated its intention to help interested customers transfer their assets to exchanges that meet Japanese regulatory standards.
Additionally, the exchange will remove Japanese-language content from its website, while continuing to provide updates to support the migration process.
In its announcement, Gate.io said that the cessation of services would be conducted in accordance with FSA compliance requirements.
However, the exchange did not specify an exact date when it will completely halt its operations in Japan.
Gate.io is known for its large list of trading pairs, currently numbering 3,557, and a robust 24-hour global trading volume of $19.5 billion, according to CoinGecko.
Gate.io’s exit from Japan underscores the complex regulatory environment in Japan, which continues to present significant challenges for cryptocurrency exchanges. However, some Japanese companies remain optimistic about the future of Bitcoin investing.
On July 22, Metaplanet, a Japanese investment and advisory firm, announced the acquisition of another 20.4 BTC, worth approximately $1.2 million, after an initial Acquisition of 42,466 BTC at the beginning of the month.