Gate.io, one of the world’s most popular bitcoin exchanges, has decided to shut down all services available in Japan. The withdrawal, which will go into effect on July 22, marks a radical change in the platform’s operational landscape.
In a announcement On Monday, the exchange unveiled a compliance program aimed at helping its Japanese clients migrate their assets to platforms that comply with local laws.
Gate.io said it intends to comply with financial regulations wherever it operates. Gate.io added that it regrets informing its customers that it will end its services for Japan.
Image: ビットタイムズ
Gate.io: Navigating Regulatory Waters
Gate.io leave japan draws attention to the difficulties faced by cryptocurrency exchanges in negotiating complex legal landscapes. Primarily under the control of the Financial Services Agency (FSA)Japan has one of the strictest laws for bitcoin trading.
The Payment Services Act (PSA), passed in April 2017 and which recognizes cryptocurrencies as legal property and requires exchanges to register with the FSA, is the pillar of this approach.
Total crypto market cap at $2.3 trillion on the daily chart: TradingView.com
The strict anti-money laundering (AML) and counter-terrorist financing (CFT) rules included in this robust regulatory framework aim to make the environment safer for bitcoin transactions. In addition, the control of bitcoin derivatives is ensured by the Financial Instruments and Exchange Act (FIEA), which sets more criteria for exchanges in terms of consumer safety and cybersecurity.
Japan has recently tightened its regulatory oversight in response to recent reports of security breaches and growing investor protection concerns. The FSA has strengthened its compliance criteria, increasing operational oversight of exchanges.
Image: Techopedia
Ensuring a seamless transition
Gate.io is launching a program to help consumers move their crypto assets to compliant platforms to ensure a smooth transition. The program involves removing descriptions of Japanese users and the Japanese market from its website and providing detailed proposals for suspending services and relocating transactions.
Gate.io assured its customers that all necessary measures will be taken to comply with Japanese law, including close cooperation with authorities such as the FSA. The Gate.io team stated in its statement that the details of the suspension of services as well as the response and timeline for relocation of transactions will be implemented in accordance with the compliance requirements of the authorities and will be revealed shortly.
Featured image from Condé Nast Traveler, chart from TradingView
