Japan’s climate towards cryptocurrency is not all favorable, some exchanges have begun pulling out of the country by suspending services to users. Latest is the crypto exchange HitBTC following the same action. The exchange has done this because it is not authorized to operate in Japan. Users having IP addresses of Japan will have to follow exchanges Know Your Customer (KYC) norms and have to give proof of their residential address to the exchange.
Over the past few years, HitBTC has become a very popular cryptocurrency trading platform. The company offers many different cryptocurrency pairs. Their presence also spans many countries around the world, including Japan. On its website’s legal information page under terms of services world’s eighth largest cryptocurrency exchange added service restriction section.
“You shall not use our services and immediately cease using those if you are a resident or become a resident at any time of the state or region where HitBTC is not authorized to act,”
The exchange also mentioned,
“For the avoidance of any doubt and in accordance with the Japan Payment Services Act, HitBTC has temporarily suspended providing virtual (crypto) currency exchange services to residents of Japan.”
Most people know exchanges operating in Japan need to obtain authorization from regulators. That process also involves obtaining a specific license. As of right now, HitBTC does not have such a license. Nor do they plan to obtain one, by the look of things. The logical outcome is to suspend the services provided in the country until further notice.
HitBTC is in operation since 2013 and operates on a 24-hour basis. Its 24-hour trading volume is approximately $281,395,500.The exchange is having more than 300 cryptocurrencies on its platform.
Financial Service Agency of Japan has given license to 16 cryptocurrency exchange to operate and approximately 16 were pending.
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