Gate.io management announced that it will close the ability to register new accounts from Japanese residents and begin a phased shutdown of services to local users. The exchange will assist Japanese traders in transferring their crypto assets to other platforms that operate in accordance with local laws. This will ensure that users’ funds remain safe. Gate.io will also remove Japanese language support from its platform.
“We are committed to complying with financial regulations in all regions where we operate. Due to this commitment, we are forced to cease providing services to customers in Japan,” Gate.io said in a statement.
In 2020, Japanese authorities amended the Payment Services Act and the Financial Instruments and Exchange Act, imposing stricter requirements on exchanges, including enhanced security measures and regular financial stability assessments. In 2021, the Financial Services Authority of Japan (FSA) tightened licensing requirements for crypto exchanges, including mandatory segregation of client funds and corporate assets, as well as compliance with anti-money laundering rules and the Know Your Customer (KYC) procedure.
Recall that in May, Gate.io suspended its operations in Hong Kong and withdrew its application for a license from the Hong Kong Securities and Futures Commission (SFC). The exchange explained its actions by its intention to comply with new licensing requirements in Hong Kong.
Source: Bits
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