Key takeaways:
- Gate[.]io, a crypto exchange, has started to stop serving Japanese consumers, claiming “compliance requests” from the nation’s financial authority.
- The Cayman Islands-based exchange will stop accepting new accounts from any Japanese consumers as of July 22.
Gate[.]io, a crypto exchange, has started to stop serving Japanese consumers, claiming “compliance requests” from the nation’s financial authority.
In a statement dated July 22, Gate[.]io declared that it would help impacted customers move their assets and that it was discontinuing services for all Japanese customers.
The Cayman Islands-based exchange will stop accepting new accounts from any Japanese consumers as of July 22.
The exchange stated that it was closing as a result of “compliance requests from authorities such as the Financial Services Agency” and promised to release further information on the closure shortly.
The letter states that Gate[.]io will begin a program to abide by Japanese laws and regulations and will assist consumers in moving to exchanges that do the same.
Additionally, it promised to delete any content written in Japanese from its website while continuing to offer updates to facilitate account conversion.
The Financial Services Agency (FSA), Japan’s financial regulator, has requested that the timeframe for the service termination plan and transaction migration be followed. However, it did not set a deadline for when the exchange would close in the nation.
Despite having extremely strict laws for crypto assets, Japan is largely considered a worldwide hub for crypto and was among the first nations to legalize crypto trading.
Crypto is governed by Japan’s Payment Services Act (PSA), which mandates that exchanges register with the FSA, abide by anti-money laundering (AML) laws, and verify the identity of its customers.
According to CoinGecko, Gate[.]io lists 3,557 pairs and has a $19.5 billion global 24-hour trading volume. Some Japanese businesses are nevertheless placing large bets on Bitcoin investments in spite of the legislative obstacles.
Japanese investment and consulting firm Metaplanet said on July 22 that it had completed the purchase of a further 20.4 BTC, or around $1.2 million, to fulfill its June purchase objectives.
