Gate.io announced on Monday that it is suspending its services in Japan. The exchange stated it will implement a compliance process for customers who wish to transfer their assets to crypto platforms that meet Japanese regulatory standards.
“As a leading global cryptocurrency exchange, we are committed to adhering to financial regulations in all operating regions. In line with this commitment, we regret to announce the termination of our services in Japan,” Gate.io stated.
The exchange has halted the creation of new accounts for Japanese users and is working to facilitate a smooth transition. This includes launching a program to support users in migrating their cryptocurrencies while ensuring compliance with Japanese market regulations.
Gate.io Users to Receive Further Details on Japanese Service Termination
Gate.io has announced that it will take all necessary steps to align with Japanese regulations, including removing references to Japanese users and the Japanese market from its website. The exchange will also provide further information on how it will cease its services and manage transaction migration. Additionally, Gate.io will outline the services and cryptocurrencies it will continue to offer in compliance with current regulations.
“The details regarding the suspension of our services, as well as the plan and timeline for migrating transactions, will be implemented according to directives from authorities such as the Financial Services Agency and will be communicated promptly,” the Gate.io team stated in a recent post on their website.
Regulation of Cryptocurrency Exchanges in Japan: An Overview
In Japan, all cryptocurrency exchanges must be registered and approved by the Financial Services Agency (FSA) and the Finance Bureau. In 2023, the FSA issued warnings to four major crypto exchanges for operating illegally within the country.
Recently, Japanese regulators have adopted a stricter stance on cryptocurrency regulation, aiming to enhance investor protection. This more rigorous approach has been driven by incidents of fraud, such as the collapse of FTX, which also affected FTX Japan.
In May of this year, Gate.io’s subsidiary Gate.HK withdrew its licensing application in Hong Kong, following the lead of other exchanges like OKX and HTX.
