HitBTC, one of the 10 largest crypto-stock exchanges in the world announced Sunday, June 3 it suspends its operations for all residents in Japan. HitBTC made this decision because of the strict regulatory requirements of the Japanese Financial Services Agency (FSA).
HitBTC suspends service to avoid friction with FSA
Having become a very popular cryptocurrency trading platform in Japan, HitBTC is expanding its operations in many countries around the world. However, at the request of the FSA, HitBTC teams declared the temporary suspension of all accounts domiciled in Japan.
Entering into force in the country in April 2017, the law on payment services legislates cryptocurrencies as a means of payment. The evolution of the regulatory framework obliges all cryptocurrency exchanges operating in Japan to register with the Financial Services Agency.
— ででん฿ (@crypde) June 2, 2018
Binance continues to practice without a license and has received a warning from the FSA last May. Of 16 crypto-exchanges that have already applied for a license with the Japanese regulator, 8 applications have been rejected for non-compliance
Make up for the hacking of 2015
It seems that HitBTC has no intention of having a license to operate in Japan. The crypto-purse declared as follows:
“Please do not use our services and immediately stop using them if you are a resident or if you become a resident of a state or region where HitBTC is not authorized to operate. “
Any subscriber to the company’s website with a Japanese IP address will be required to provide its exact domiciliation. The trading platform is accessible once the user shares their location information.
HitBTC was hacked in 2015. The complaints of loss of funds and withdrawal problems ensued although the crypto-stock market declared that the assets of its users are fully secure.
However, this did not prevent the company from seizing the 8th place in the ranking of the largest cryptocurrency exchange service in the world.
What do you think of the suspension of HitBTC services in Japan? Let us know in the comments section below.