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Gate.io, a prominent cryptocurrency exchange globally, has declared its intention to cease operations in Japan and will halt the creation of new accounts for Japanese residents starting July 22, 2024.
Additionally, the exchange has initiated a legal compliance program in Japan aimed at assisting customers in transitioning their transactions to crypto asset trading platforms that adhere to Japanese regulations.
Gate.io to Cease Services for Japanese Users; Introduces Migration Assistance Program
Source: Gate.io
As per the announcement made today, Gate.io will discontinue services for its users in Japan.
This decision underscores the exchange’s dedication to adhering to financial regulations across all jurisdictions in which it operates.
Starting July 22, 2024, the exchange will stop the opening of new accounts for users based in Japan.
To facilitate a seamless cessation of services for current users in Japan, Gate.io will implement various measures.
Firstly, the exchange will introduce a program designed to assist customers in transferring their transactions to cryptocurrency exchanges that comply with Japanese regulations. This initiative will ensure that users can continue their activities within Japan’s legal framework.
Moreover, Gate.io will take necessary actions to align with Japanese law, which includes removing Japanese descriptions from the platform.
Throughout the support period, the exchange will offer information in Japanese as needed to aid users during their transition.
Finally, specifics regarding the suspension of services, including the response strategy and timeline for transaction migration, will be shared in accordance with compliance requirements from the Financial Services Agency.
The exchange has stated that these specifics will be executed in line with compliance requests from authorities such as the Financial Services Agency.
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The announcement will also detail the types of services and crypto assets that can be offered in accordance with existing laws and regulations.
The company expresses regret for any inconvenience this may cause and appreciates the ongoing support of its users. Gate.io also reaffirmed its commitment to collaborating with financial regulatory bodies worldwide to ensure compliance.
Japan’s Stringent Crypto Regulations: Insights from Mt. Gox, Coincheck, and Recent FSA Actions
Japan’s cryptocurrency regulations are significantly more stringent than those in many other nations, heavily influenced by several notable hacks of crypto exchanges.
In 2014, a significant hack occurred at Mt. Gox, a major exchange in Japan, leading to considerable Bitcoin losses for investors. This incident resulted in years of legal disputes, but Mt. Gox finally commenced repayments to its creditors on June 5, providing some relief to those impacted.
Another significant event was the 2018 hack of Coincheck, which further motivated Tokyo to implement the world’s first comprehensive regulatory framework for domestic crypto exchanges.
Recently, on June 14, the Financial Services Agency (FSA) issued a warning to the LBank Exchange for offering cryptocurrency transactions to Japanese residents without the necessary registration.
Importantly, Japanese law requires that all exchanges operating in the country obtain operating permits issued by the FSA.
This lengthy and detailed process has discouraged many major players from entering the Japanese market and has resulted in the departure of several significant companies in recent years.
The law also stipulates that foreign firms actively targeting Japanese residents must either halt their operations or apply for FSA permits.
In previous years, the FSA has contacted leading exchanges, such as Binance, urging them to either stop targeting Japanese customers or seek a license.
In 2023, the FSA intensified its scrutiny of overseas platforms, issuing warnings to Bybit, MEXC Global, Bitget, and Bitforex for providing cryptocurrency trading services to Japanese residents without proper registration.
The post Gate to End Services and Account Creation in Japan from July 22 appeared first on Cryptonews.
