Gate.io, a prominent cryptocurrency exchange, has announced the cessation of all its services in Japan. Effective July 22, the platform will no longer permit the creation of new accounts for Japanese residents. This strategic move aims to align with the stringent financial regulations enforced in the region.
The exchange unveiled this decision on Monday, highlighting a dedicated compliance process to aid customers in transitioning their assets to crypto platforms that adhere to Japanese regulatory standards.
“As a leading global cryptocurrency exchange, our commitment to regulatory compliance in all operational regions is paramount. Consequently, we regretfully announce the termination of our services in Japan,” the company stated. Gate.io has already halted new account registrations for users in Japan and is implementing measures to ensure a seamless transition for its customers. This includes a comprehensive program designed to ensure adherence to Japanese market laws and regulations, facilitating the migration of users’ crypto assets.
In its communication, Gate.io assured customers that it would undertake all “necessary measures to comply with Japanese law.” This involves removing all references to Japanese users and the Japanese market from the exchange’s website.
🚨JUST IN: #Gate @gate_io, a #cryptocurrency exchange, has declared its decision to cease operations in Japan 🇯🇵 and halt new account openings for Japanese residents starting from July 22, 2024. pic.twitter.com/3yWVGvcpYV
— CoinEcho (@mycoinecho) July 22, 2024
Further details regarding the suspension of services, transaction migration plans, and compliance with the Financial Services Agency (FSA) directives will be provided promptly. Gate.io emphasized its commitment to transparency throughout this process.
Japan’s regulatory framework mandates that all cryptocurrency exchanges must be registered and approved by the FSA and the Finance Bureau. In 2023, the FSA issued warnings to four major crypto exchanges for unauthorized operations within the country. This heightened regulatory scrutiny follows incidents of fraud and major collapses, such as the downfall of FTX, which significantly affected FTX Japan.
Earlier this year, Gate.io’s subsidiary, Gate.HK, withdrew its licensing application in Hong Kong, following a similar trend among exchanges like OKX and HTX, as they navigate the evolving regulatory landscapes in Asia.
