Increasing pressure of regulators to exchanges has hit a new topic in the market as Japanese cryptocurrency exchange HitBTC suspends its services for Japanese residents. The exchange has done this because it is not authorized to operate in Japan. Users having IP addresses of Japan will have to follow exchanges Know Your Customer (KYC) norms and have to give proof of their residential address to the exchange.
On its website’s legal information page under terms of services world’s eighth largest cryptocurrency exchange added service restriction section.
“You shall not use our services and immediately cease using those if you are a resident or become a resident at any time of the state or region where HitBTC is not authorized to act,”
In addition to this exchange wrote
“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.”
The exchange also clarified that if company’s technology detects that the user using companies services having an IP address registered in Japan then the user will have to give proof of non-resident of Japan only then user further avail the services.
Exchange put a notice on Sunday and clearly mentioned “will apply only to those living in the country.”
HitBTC is in operation since 2013 and operates on a 24-hour basis. Its 24-hour trading volume is approximately $281,395,500.The exchange is having more than 300 cryptocurrencies on its platform.
Financial Service Agency of Japan has given license to 16 cryptocurrency exchange to operate and approximately 16 were pending, which still operates the in the country the as the nation has adopted cryptocurrencies as means of payment, So it became mandatory to register itself with Japan’s Financial Service Agency to get a legal status.
According to internal source out of 16 application pending with Financial Service Agency 8 are opting out from the country because of harsh regulations of the Agency.