HitBTC, a digital currency exchange, has suspended services for investors residing in Japan to avoid conflicts with the country’s financial regulator. The regulator has not authorized HitBTC to operate in Japan. Users accessing the platform from Japanese IP addresses will be asked to provide residency information as part of the Know Your Customer (KYC) process. This step will also help identify investors who do not reside in Japan.
HitBTC halts services in Japan
HitBTC, ranked among the largest cryptocurrency exchanges worldwide by CoinMarketCap, has announced the suspension of its services for Japanese residents. On its website, the Hong Kong–based company added a new “Service Restriction” section within its Terms of Use. The statement reads: “You must not use our services and should cease using them immediately if you are a resident of a country where HitBTC is not authorized to operate.”
The company also posted a video in English covering these developments:
https://www.youtube.com/watch?v=e5M-OTnkrRU
HitBTC clarified that when the platform detects access from an IP address registered in Japan, users will be required to confirm whether they are residents of Japan. The company issued additional communications confirming the suspension of its services for users located in Japan.
Complying with Japanese regulatory requirements
The Japanese Payment Services Act referenced by HitBTC took effect in April 2017 and provides a legal framework for cryptocurrencies. Under this law, any exchange operating in Japan must be registered with the country’s financial authority, the FSA.
To date, 16 cryptocurrency exchanges have obtained operating licenses and are authorized to offer services in Japan. The Japanese financial regulator has also issued warnings to several companies continuing to operate in Japan without the necessary authorization.