Crypto Exchange HitBTC Shuts Down in Japan, Awaits Approval from Regulators

HitBTC is blocking traders in Japan from logging into the cryptocurrency exchange.

The change will be in place as HitBTC awaits permission to operate in the country.

“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.

In case our technology detects that you use our Services from an IP address registered in Japan, or any other services registered in Japan, you would be asked to confirm that you are not a resident of Japan by providing information on you residency within KYC procedure.”

HitBTC says it is working with a law firm in Japan to gain approval from regulators.

Recent legislation requires that all cryptocurrency exchanges offering services in the country formally register with the country’s regulatory bureau, called the Financial Services Agency (FSA).

Since then, about 16 exchanges have earned a license to operate. HitBTC’s application is still pending.

According to a company statement,

“Being among the industry leaders means not only developing outstanding technology to contribute to the industry growth, but also an incredible level of responsibility. This of course includes responsibility for users’ security and higher level of service, but at the same time compliance to the regulations is essential for keeping the market civilized. Bearing in mind extensive regulatory approvals we are yet confident to restart the business very soon.”

HitBTC is planning to expedite the launch of its regulated Japanese operations in Q3 2018.