Gate.io to wind down services for customers in Japan

Due to “compliance requests” from Japan’s financial authority, cryptocurrency exchange Gate.io has started to stop services for its Japanese customers. On July 22, Gate.io stated that it would help impacted customers move their assets and that it discontinued services for all Japanese customers.

The exchange, which has its headquarters in the Cayman Islands, will stop accepting new accounts from any Japanese consumers as of July 22.The exchange stated that it planned to close due to “compliance requests from authorities such as the Financial Services Agency” and promised to release further information on the matter shortly.

The letter states that Gate.io will start a program to abide by Japanese laws and regulations and will assist customers in moving to exchanges that do the same. Additionally, it promised to delete any content written in Japanese from its website while continuing to offer updates to facilitate account conversion.

The Financial Services Agency, Japan’s financial regulator, will handle compliance requests about the timing for the service termination plan and transaction migration.On the other hand, it did not provide a date for the countrywide shutdown of the exchange itself.

Japan’s Crypto Leadership and Gate.io Market Impact

Despite having very strict laws for crypto assets, Japan is largely regarded as a worldwide crypto leader and was among the first to allow crypto trading. Japan’s Payment Services Act (PSA) governs cryptocurrency assets, mandating that exchanges register with the FSA, abide by anti-money laundering (AML) laws, and verify their customers’ identities.

CoinGecko reports that Gate.io has 3,557 pairings listed and a $19.5 billion global 24-hour trading volume. For further information, Cointelegraph reached out to Gate.io but did not hear back right away. Certain Japanese businesses continue to place significant bets on Bitcoin ventures despite the legislative obstacles.

Japanese investment and consulting firm Metaplanet said on July 22 that it has completed the purchase of a further 20.4 BTC, or around $1.2 million, to fulfill its June purchase objectives.