Regulation
Gate.io Shuts Down Services in Japan
Gate.io has announced that it is ending all services in Japan, with new accounts being stopped for Japanese residents as of July 22.
The exchange announced the move on Monday and revealed that a compliance process would be put in place for its clients looking to migrate assets to crypto platforms that are currently compliant with Japanese regulations.
“As one of the world’s leading cryptocurrency exchanges, we strive to comply with financial regulations in all regions where we operate. Based on this commitment, we regret to inform you that we will be ending our services for Japan,” the exchange said. wrote.
Gate.io has suspended the opening of 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 wish to migrate their cryptocurrencies.
Users want more details
In a notice to its customers, Gate.io said the exchange would take all “necessary measures to comply with Japanese law.” This includes removing descriptions related to Japanese users and the Japanese market on the exchange’s website.
The platform will also communicate more details about the end of its services and the transaction migration timeline. Gate.io will also provide details on the services and crypto assets it will offer depending on the current regulations.
“The details of our service suspension and the response and timing of the transaction migration plan will be implemented in accordance with compliance requests from authorities such as the Financial Services Agency, and will be announced promptly,” the Gate.io team said in the message posted on its website.
Regulation of Cryptocurrency Exchanges 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, Japanese regulators have taken a stricter approach to cryptocurrency regulation as part of a broader framework that aims to provide better protection for crypto investors. Cases of fraud, including the major FTX collapse that impacted FTX Japan, have necessitated this approach.
In May this year, Gate.io’s subsidiary Gate.HK withdrew its license application in Hong Kongjoining many other exchanges including OKX and HTX.