Gate.io has announced that it’s terminating all its services in Japan, with a halt to new accounts opening for Japanese residents commencing on July 22.
The exchange announced the move on Monday and revealed a compliance process would be in place for its customers that seek to migrate assets to crypto platforms that currently comply with Japanese regulations.
“As one of the world’s leading cryptocurrency exchanges, we strive to comply with financial regulations in all regions in which we operate. Based on this commitment, we regret to inform you that we will be terminating our services for Japan,” the exchange 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 want to migrate their crypto.
Users to 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 deleting descriptions related to Japanese users and the Japanese market on the exchange’s website.
The platform will also communicate more details on terminating its services and the schedule for transaction migration. Gate.io will also provide details of services and crypto assets it will offer based on current regulations.
“Details of the suspension of our services and the response and schedule for the plan for the migration of transactions 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 post published on its website.
Crypto exchange regulation in Japan
Japan mandates that all cryptocurrency exchanges operating in the country must be registered and approved by the Financial Services Agency (FSA) and the Finance Bureau. In 2023, the FSA warned four major crypto exchanges for operating illegally in the country.
In recent months, regulators in Japan have taken a more strict approach to crypto regulation amid a broader framework that seeks to provide more protection to crypto investors. Cases of fraud, including the major collapse of FTX that impacted FTX Japan, have necessitated this approach.
In May this year, Gate.io subsidiary Gate.HK withdrew its application for licensing in Hong Kong, joining many other exchanges, including OKX and HTX.
