Bitget is ending its cryptocurrency trading services for residents of Japan, citing efforts to comply with the country’s evolving regulatory framework.
The move follows legislation approved by Japan’s parliament in July that reclassifies cryptocurrencies as financial instruments, as reported by CoinDesk.
The exchange stopped accepting new registrations from Japanese residents on Sunday (2 August).
Existing users who believe Bitget has incorrectly identified them as Japanese residents must complete a Level-2 identity verification process, including proof of address, by 1 November.
Any account that fails to complete this verification will be treated as belonging to a Japanese resident.
Bitget will place these accounts into close-only mode on 1 November, preventing users from opening or adding to positions and restricting access to services including spot and futures trading, copy trading, trading bots, and Earn products.
Deposits, subject to applicable limits, and withdrawals will remain available.
Bitget will forcibly close all remaining positions and suspend card services on 31 December. Users will still be able to withdraw their assets after that date.
Bitget responds to regulatory pressure
Japan has continued to tighten oversight of cryptocurrency trading platforms serving users in the country without local registration.
Parliament approved legislation in July that reclassifies cryptocurrencies as financial instruments.
Those rules are expected to take effect next year and introduce penalties for operating without registration.
Companies could face fines of about US$62,800 and prison sentences of up to 10 years.
Japan’s Financial Services Agency issued a warning letter to Bitget in 2023.
The regulator also notified Bybit, BitForex, and MEXC that they were providing cryptocurrency trading services in Japan without the required registration and were therefore in breach of the country’s fund settlement laws.
Featured image credit: Edited by Fintech News Hong Kong, based on image by thida via Magnific