Gate.io, a cryptocurrency exchange headquartered in the Cayman Islands, has announced that it will cease services for Japanese customers due to "compliance requests" from Japan's Financial Services Agency (FSA). This decision was made public on July 22, and the exchange stated it would assist affected customers in migrating their assets to compliant exchanges.
Gate.io notice of service termination (translation). Source: Gate.io
Service Suspension and Customer Support
Effective immediately, Gate.io will suspend the opening of new accounts for Japanese residents. The exchange has committed to providing additional details and support regarding the shutdown.
It will remove Japanese language content from its website but continue to provide updates to facilitate account migration.
Cryptoassets in Japan are strictly regulated
Japan is known for its rigorous regulatory framework for crypto assets, governed by the Payment Services Act (PSA). The PSA mandates that crypto exchanges register with the FSA and comply with anti-money laundering (AML) regulations, including customer identity verification.
Gate.io's service termination and transaction migration plan will adhere to the compliance requests set forth by Japan's financial regulator. Although a specific shutdown date for the exchange's operations in Japan was not provided, the cessation of services is a direct response to Japan's stringent regulatory environment.
Gate.io's Market Presence
Globally, Gate.io lists 3,557 trading pairs and reports a 24-hour trading volume of $19.5 billion, according to CoinGecko.
Despite the regulatory challenges, Japan remains an influential crypto hub, having been one of the first countries to legalize crypto trading.
Japan’s Bitcoin market still has plenty of momentum
Notably, Japanese companies continue to invest heavily in Bitcoin despite regulatory hurdles.
For instance, on July 22, Metaplanet, a Japanese investment and consulting firm, announced the purchase of an additional 20.4 BTC, valued at approximately $1.2 million, finalizing its purchase plans from June.