Lack of Registration Leads Huobi Pro to Pull Japan’s Crypto Trading Services
As of July 2nd, Huobi Pro will no longer allow users in Japan to use their trading services. This decision comes after the platform did not register with the financial regulator in Japan, which means that much of their traffic will be slowing down.
Users of the Huobi Pro platform were sent an email on Wednesday that notified them directly of the upcoming change. Along with the last day of service, the exchange also noted that they would be removing the promotional materials for Japan from their homepage on the same day. However, at the moment, Huobi Pro has not released a public statement beyond the email.
In the report provided to users, the platform also states that they aren’t registered with the FSA, which keeps them from performing legally. The Payment Services Act of April 2016 noted that Bitcoin is now noted as an acceptable method of payment. However, as part of the Act, any potential exchange has to register with the FSA and follow their regulations.
Huobi Pro is one of the top three exchanges in China, and they’ve just established a “strategic partnership” with SBI, which is founded in Japan. Between the two parties, they jointly plan to launch a crypto exchange. Even though this announcement only came in January, SBI pulled out of the plans two months later to focus on themselves. SBI Virtual Currencies, SBI’s individual platform, was recently opened to the public in June.
The departure of Huobi Pro from Japan follows the same actions as HITBTC, though their decision is meant to be a temporary suspension of services. Both companies based their changes off the FSA’s regulations. HITBTC has noted that they had a consultation with the regulator regarding the start of a new platform that adheres to their new decision.