Japan has quickly become an important region in the cryptocurrency industry. It is one of the few countries to effectively legitimize Bitcoin as a means, yet the region is also home to strict regulation. As such, HitBTC has confirmed it will suspend services in Japan to avoid any friction with local regulators.
The Exchange Explained:
“For the avoidance of any doubt and in accordance with the Japan Payment Services Act, Hitbtc has temporarily suspended providing virtual (crypto) currency exchange services to residents of Japan.”
Additionally, the exchange explained that if any user is detected from an IP address that is registered in Japan, it will have to provide a confirmation that he is not a resident of Japan. Moreover, it will have to provide information about residency within the KYC procedure that the exchange has.
Over the past few years, HitBTC has become a very popular cryptocurrency trading platform. The company offers many different cryptocurrency pairs. Their presence also spans many countries around the world, including Japan. Unfortunately, it appears that latter aspect will come to change fairly soon. Due to looming friction with local authorities, HitBTC will suspend its service in the region.
Suspending Hitbtc services
Although the firm’s services are no longer available in Japan, Hitbtc plans to offer services through a subsidiary. In a move to keep it in the Japanese market, Hitbtc has opted to work with a local firm to circumvent the strict FSA laws. Also faced with regulatory issues with Hitbtc is Binance. In light of the new requirements Bitfinance is operating in the country illegally. This prompted the regulator to issue a warning to Binance and its representative Changpeng (CEO) Zhao through a letter. Like other exchanges, Bitfinance will have to either comply or cease operations.
The Japanese Financial Services Agency (FSA), has given a license to 16 different virtual currency exchanges that wanted to operate in the country. But the FSA announced some time later that 8 of these exchanges will be withdrawing applications.