According to Gate.io, which continues to operate in other countries, a series of compliances to follow Japanese cryptocurrency regulation have already begun, and customers can no longer open accounts with the broker.
Cryptocurrency trader with a cup from the Gate.io brokerage. Photo: X.
Cryptocurrency exchange Gate.io has closed its activities in Japan, citing possible regulatory pressure from the country's authorities.
Founded in 2013 and based in the Cayman Islands, the platform allows the trading of several cryptocurrencies, including Bitcoin, Ethereum and many altcoins.
The Gate.io announcement, which took customers by surprise, was published in the original Japanese version. According to an investigation carried out by Livecoins, the broker only declared that it follows the regulations of all the countries in which it works.
However, it is noteworthy that this is precisely the reason that led the broker to leave the country, although the announcement does not provide further details.
“As one of the world's leading cryptocurrency exchanges, we strive to comply with financial regulations in every jurisdiction in which we operate. Based on this commitment, we regret to inform you that we will discontinue our services in Japan. From July 22, 2024, our company will no longer open new accounts for residents of Japan,” says the statement, after translation from Japanese to Portuguese.
The broker will follow a three-step process to finalize its operations, leaving customers fully supported until the end of their stay in the country.
Broker asks for continued support from customers and apologizes
After indicating its departure from the country, the broker's announcement also apologized to all of the company's clients in Japan, whether residents of the country or not. Furthermore, it asked all users for continued support in their activities, although it is not very clear what that support would be.
“We apologize for any inconvenience this may cause to users residing in and using the service in Japan, and ask for your continued support. We continue to cooperate with financial regulators in all jurisdictions in which we operate to ensure compliance.”
It is worth remembering that Japan is the country with the pioneering cryptocurrency regulation in the world. This is because, when Mt. Goz went bankrupt, the headquarters of the then largest brokerage in the world was in the country, and it caused many investors to suffer.
After that, the local government reinforced its focus on cryptocurrency brokers and has demanded a serious compliance policy from companies.
It is unclear whether the strict policies that led to Gate.io's exit, but the company's customers will now have to withdraw their cryptocurrencies to other regulated companies in the country.
