Gate.io terminates services for Japanese customers amid regulatory pressures
io halts Japanese operations due to FSA regulatory compliance demands.
The exchange will assist Japanese customers in migrating to compliant exchanges.
io’s shutdown timing in Japan remains unspecified as it removes Japanese content.
Gate.io, a leading cryptocurrency exchange, has announced it will cease operations for Japanese customers due to regulatory challenges.
The decision follows compliance requests from Japan’s Financial Services Agency (FSA). The exchange, headquartered in the Cayman Islands, will also stop opening new accounts for Japanese users effective immediately.
Stringent crypto trading regulations in Japan
Gate.io’s move is driven by the stringent regulations Japan imposes on crypto trading. Despite the country being an international crypto hub and one of the first to legalize crypto trading, the regulatory landscape remains rigorous.
The Payment Services Act (PSA) mandates that exchanges register with the FSA and comply with anti-money laundering (AML) regulations and thorough customer identity checks.
Gate.io to assist affected customer move their assets
Gate.io has stated its intention to assist affected customers in migrating their assets to exchanges that meet Japanese regulatory standards.
Additionally, the exchange will remove Japanese language content from its website, although it will continue providing updates to support the migration process.
In its announcement, Gate.io mentioned the termination of services would be conducted in accordance with compliance requests from the FSA.
However, the exchange did not specify an exact date for when it will fully shut down its operations in Japan.
Gate.io is known for its extensive list of trading pairs, currently numbering 3,557, and a substantial global 24-hour trading volume of $19.5 billion, according to CoinGecko.
The exit of Gate.io from Japan underscores the complex regulatory environment in Japan, which continues to present significant challenges for crypto exchanges. Nevertheless, some Japanese firms remain optimistic about the future of Bitcoin investments.
On July 22, Metaplanet, a Japanese investment and consulting firm, announced the acquisition of an additional 20.4 BTC, valued at around $1.2 million, completing its purchase plans outlined in June.
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