Thomas Daniels
Gate.io has announced the cessation of its services in Japan, effective immediately, with a halt to new account openings for Japanese residents commencing on July 22. The decision aligns with the exchange’s commitment to adhering to regional financial regulations.
The exchange disclosed this development on Monday, indicating that a compliance process would be established for customers to migrate assets to platforms compliant with Japanese regulations. Gate.io emphasized its dedication to operating within legal frameworks globally, stating, “As one of the world’s leading cryptocurrency exchanges, we strive to comply with financial regulations in all regions in which we operate. Based on this commitment, we regret to inform you that we will be terminating our services for Japan.”
In its notice, Gate.io assured customers that it would take all necessary measures to comply with Japanese law, including removing references to Japanese users and markets from its website. The platform will also provide detailed information on the termination of services and the migration schedule for transactions. Gate.io promised to announce the specifics promptly, in accordance with compliance requests from regulatory authorities such as the Financial Services Agency (FSA).
Japan requires all cryptocurrency exchanges to be registered and approved by the FSA and the Finance Bureau. In 2023, the FSA issued warnings to four major crypto exchanges for operating without authorization. Recently, Japanese regulators have intensified their regulatory stance, aiming to bolster investor protection in response to numerous fraud cases, including the significant collapse of FTX, which impacted FTX Japan.
In May, Gate.io’s subsidiary Gate.HK withdrew its licensing application in Hong Kong, following the footsteps of other exchanges like OKX and HTX, amid tightening regulatory scrutiny.
