Gate.io halts its services in Japan

Gate.io has announced that it has terminated all of its services in Japan and will be stopping new account openings for Japanese residents starting July 22.

The exchange announced the move on Monday, explaining that it will implement a compliance process for its customers who want to move their assets to crypto platforms that already comply with Japanese regulations.

“As one of the world’s leading cryptocurrency exchanges, we strive to comply with financial regulations in all jurisdictions in which we operate. Based on this commitment, we regret to announce that we will be discontinuing our services in Japan,” the exchange wrote.

Gate.io has suspended new account openings for users in the country and is taking steps to ensure a smooth transition for customers. This includes launching a program to ensure compliance with Japanese market laws and regulations to support users who want to move their crypto.

Users want to get more details

In a notice sent to its customers, Gate.io stated that the exchange will take “all necessary measures to comply with Japanese law,” including deleting statements regarding Japanese users and the Japanese market on the exchange’s website.

The platform will also communicate more details and a timeline for the transaction transition regarding the termination of its services. Gate.io will also provide details on the services and crypto assets it will offer in accordance with current regulations.

“The details regarding the suspension of our services and the response and timetable regarding the transition plan of the transactions will be implemented in line with the compliance requests from the authorities such as the Financial Services Agency and will be announced immediately,” the Gate.io team stated in a post on its website.

Cryptocurrency exchange regulation in Japan

Japan requires all cryptocurrency exchanges operating in the country to be registered and approved by the Financial Services Agency (FSA) and the Finance Bureau. The FSA issued a warning to four major cryptocurrency exchanges in 2023 for operating illegally in the country.

In recent months, regulators in Japan have taken a stricter approach to crypto regulation amid a broader framework aimed at providing greater protection for crypto investors. This approach has been necessitated by scam cases, including the massive collapse of FTX Japan.

Gate.io subsidiary Gate.HK withdrew its license application in Hong Kong in May this year, joining several exchanges including OKX and HTX.