Bitget set to exit Japan, close all remaining positions by year-end

Bitget said it will stop providing crypto trading services to residents of Japan, citing efforts to comply with local regulations.

The crypto exchange, ranked fifth by Coingecko with trading volume of roughly $714.7 million over the past 24 hours, stopped accepting new registrations from Japanese residents on Sunday, according to a Monday announcement.

Japan reclassified cryptocurrencies as financial instruments following legislation approved by its parliament in mid-July. The new rules are expected to take effect next year and include fines of about $62,800 and prison sentences of up to 10 years for operation without registration.

Existing users who believe Bitget has incorrectly identified them as Japanese residents must complete a Level-2 identity verification, including proof of address by Nov. 1, the company said. Accounts that do not complete the process will be considered Japanese, it added.

Bitget will place those accounts into close-only mode starting Nov. 1, according to its FAQ. Users will not be able to open or add to positions or use services, including spot and futures trading, copy trading, trading bots and their earn products. Deposits, subject to limits, and withdrawals will remain available.

The exchange said it will forcibly close all remaining positions on Dec. 31 and suspend card services. Users will still be able to withdraw assets after that date.

The Seychelles-registered company did not identify a specific regulatory change or action behind the decision. It did not immediately respond to a CoinDesk request for further information.

Japan requires crypto trading platforms that provide services to people in the country to comply with rules overseen by the national Financial Services Agency (FSA). The country has taken a strict approach to foreign crypto platforms operating without local registration.

Bitget, along with Bybit, BitForex and MEXC, received a warning letter in 2023 notifying them that they were operating in Japan without proper registration and therefore in violation of the country’s fund settlement laws.