HitBTC Exchange Suspends Activities In Japan Amid Regulatory Concerns
An important cryptocurrency exchange in the world, Hitbtc, has decided to suspend its services for Japanese residents. The main purpose behind the decision is to avoid problems with the country’s regulatory agency. The exchange is not authorized to operate in Japan and users with Japanese IP addresses will have to provide residency information.
HitBTC Leaves Japan
According to the information uploaded to its website, HitBTC informed to its clients that it will suspend virtual currency exchange services to Japanese residents. The exchange warns that users shouldn’t use the services and immediately stop using them if they are residents or planning to become a resident of regions where HitBTC is not authorized to act.
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.
At the moment of writing this article Hitbtc is the 8th most important virtual currency exchange by trading volume. It has moved $278 million dollars in the last 24 hours and the most important trading pairs are BTC/USDT, BCH/BTC and ETH/BTC. The exchange offers more than 650 different virtual currencies and tokens.
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.
Furthermore, other platforms have been warned as well, including the most important exchange in the market, Binance, that manages almost $1.9 billion dollars per day. At the same time, Kraken announced that it was withdrawing from the Japanese market due to elevated costs so as to comply with FSA rules.
Japan has been an important virtual currency hub in the last years. It was one of the friendliest countries on earth and has an important and active crypto community. Hitbtc leaving the country is not a good signal for the crypto health in the region.