Gate to End Services and Account Creation in Japan from July 22

Gate.io, one of the world’s leading cryptocurrency exchanges, announced on July 22 that it would terminate services in Japan and immediately stop opening new accounts for Japanese residents. Additionally, the exchange launched a legal compliance program in Japan to support customers in migrating transactions to crypto asset trading providers that comply with Japanese regulations.

Gate.io to Terminate Services for Japanese Customers; Announces Migration Support Program

To ensure a smooth termination of services for existing users in Japan, Gate.io will implement several measures.Firstly, the exchange will launch a program to help customers migrate their transactions to cryptocurrency exchanges that comply with Japanese regulations. The program will ensure that users can continue their activities within Japan’s legal framework.

Breaking News: Leading cryptocurrency exchange @gate_io announces termination of services in Japan starting July 22, 2024. The exchange will suspend new account openings for Japanese residents and implement measures to support users transitioning to compliant exchanges. The… pic.twitter.com/bZ1GG8SPGR

— Nilesh Rohilla | Crypto Analyst (@nilesh_rohilla) July 22, 2024

Additionally, Gate.io will take steps to comply with Japanese law, including deleting Japanese descriptions on the platform.

During the support period, the exchange will provide information in Japanese to the extent necessary to assist users in their transition.

Lastly, details regarding the suspension of its services, including the response plan and schedule for the migration of transactions, will be communicated under compliance requests from the Financial Services Agency.

The announcement will also clarify the types of services and crypto assets that can be provided based on the prevailing laws and regulations.

Japan’s Strict Crypto Regulations: Lessons from Mt. Gox, Coincheck, and Recent FSA Actions

Japanese crypto regulation is notably stricter than many other countries, influenced heavily by several high-profile crypto exchange hacks.In 2014, a major exchange in Japan, Mt. Gox, suffered a major hack, resulting in substantial Bitcoin losses for investors. The hack led to years of legal battles, but Mt. Gox finally began repaying its creditors on June 5, offering some relief to those affected.Another major incident was the 2018 hack on Coincheck, which further propelled Tokyo to establish the world’s first comprehensive set of regulations 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 proper registration.Notably, Japanese law mandates that all exchanges operating within the country must obtain FSA-issued operating permits.This lengthy and thorough process has deterred many players from entering the Japanese market and has led to the exit of several major companies in recent years.The law also requires that overseas firms actively targeting Japanese residents must either cease their activities or apply for FSA permits.In previous years, the FSA has contacted top exchanges, such as Binance, requesting that they either stop targeting Japanese customers or apply for a license.In 2023, the FSA increased its scrutiny of overseas platforms. It issued warnings to Bybit, MEXC Global, Bitget, and Bitforex, stating that they were providing cryptocurrency trading services to Japanese residents without registration.