Gate.io Halts Its Services in Japan
This time a prominent cryptocurrency exchange in the name of Gate.io is the one that went out with the news of the discontinuation of all its business in the territory of Japan effective of now. As you know the Exchange is stopping all their services in Japan. As of July 22nd, they will no longer open new accounts for Japanese residents, and the closure will be complete.
The exchange disclosed during Monday’s conference that it would, among other solutions, embark on a process of compliance to its customers to make them transfer to other platforms that comport with the Japanese standards.
“One of the most significant and comforming cryptocurrency trading sites, we always make an effort to the extent of carrying out operations under the laws and regulations stipulated in every area of our involvement. With regard to this issue, we are sorry that we have to inform you about the upcoming cease of our service to Japan”, the exchange informed the users.
Smooth Transition for Customers
To begin with, Gate.io has suspended the opening of new accounts for the users it has in Japan and then went on to list all the possible modifications in order to make the process very smooth for the clients it already has. This is related to proposing some supervision that will guarantee users about Japanese market laws and regulations while the process of exchanging their cryptocurrency to other service providers who stay in the regulation.
In the absence of the mention of compliant measures,>>Gate.io informs its customers that it has a risk hedging mechanism which requires that it does ‘all measures necessary to comply with Japanese law’. This includes familiarizing the customer with their own legal obligations and removing descriptions on the exchange’s website.
The website will be revealing the concrete service cessation and the actions to migrate your assets also the migration timetable. Besides Gate.io will give more insight into its regulated services and crypto assets it will offer.
Users to Get More Details
The team of the Gate.io stated in a post on their website, “The details of the shutdown of our services, and the reaction and timetable for the transformation of transactions will be done in accordance with the requirements of authorities such as the Financial Services Agency and will be announced soon,”.
Crypto Exchange Regulation in Japan
According to Japanese regulation, every cryptocurrency exchange that is located in its territory must be registered and get permission from the Financial Services Agency (FSA) and the Finance Bureau. In 2023, the FSA charged four major crypto exchanges with illegal operations in the country.
Recently, in Japan, the regulators changed their stricter policy for the regulation of cryptocurrencies in order to protect the investors. This change is a part of the enactment of a new regulatory framework as a result of fraud cases and the downfall of large exchanges the like FTX, which also affected FTX Japan.
In May this year, Gate.io affiliate Gate.HK withdrew its application for a license in Hong Kong, thereby joining others like OKX and HTX in pulling out of the market.
