Gate.io, a prominent cryptocurrency exchange, has announced its decision to cease operations in Japan, marking a significant shift in its global strategy. The exchange revealed on Monday that it would stop accepting new accounts from Japanese residents starting July 22, with plans to fully terminate its services in the country. This move comes as part of Gate.io’s efforts to align with stringent regulatory requirements in various jurisdictions.
The exchange emphasized its commitment to regulatory compliance, stating, “As one of the world’s leading cryptocurrency exchanges, we strive to comply with regulation">financial regulations in all regions in which we operate.” To facilitate a smooth transition for its Japanese users, Gate.io is implementing a comprehensive compliance process. This process aims to assist customers in migrating their assets to cryptocurrency platforms that currently adhere to Japanese regulations.
Gate.io’s decision reflects the increasingly complex regulatory landscape for cryptocurrency exchanges in Japan. The country mandates that all crypto exchanges operating within its borders must be registered and approved by the Financial Services Agency (FSA) and the Finance Bureau. This regulatory framework has become more stringent in recent months, with authorities taking a harder stance on crypto regulation to enhance investor protection. The collapse of major players like FTX, which impacted FTX Japan, has further intensified regulatory scrutiny in the country.
As part of its exit strategy, Gate.io plans to remove all descriptions related to Japanese users and the Japanese market from its website. The exchange has committed to providing detailed information about the termination of its services and the schedule for transaction migration. These steps will be implemented in accordance with compliance requests from authorities such as the FSA. This move by Gate.io follows a similar decision by its subsidiary, Gate.HK, which withdrew its licensing application in Hong Kong earlier this year, indicating a broader trend of cryptocurrency exchanges reassessing their operations in highly regulated markets.
