Hassan Maishera
TL;DR
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Bitget has stopped accepting new users from Japan and will end crypto trading services for existing Japanese residents.
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The exchange cited regulatory compliance efforts as Japan prepares stricter cryptocurrency rules.
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Users incorrectly identified as Japanese residents must complete additional identity verification by November 1.
Cryptocurrency exchange Bitget has announced plans to discontinue crypto trading services for residents of Japan, citing the need to comply with the country’s evolving regulatory framework.
The Seychelles-based exchange stopped accepting new registrations from Japanese users on Sunday, according to a company announcement released Monday.
Bitget currently ranks among the largest cryptocurrency exchanges globally, placing fifth on CoinGecko by trading volume, with approximately $714.7 million in daily trading activity over the previous 24 hours.
Japan Introduces Stricter Crypto Regulations
Bitget’s decision comes as Japan moves toward tighter cryptocurrency regulations. The country recently reclassified cryptocurrencies as financial instruments following legislation approved by parliament in mid-July.
The new framework is expected to come into effect next year and introduces tougher penalties for operating crypto businesses without proper registration.
Companies that violate the rules could face fines of approximately $62,800 and prison sentences of up to 10 years.
Japan requires cryptocurrency platforms serving domestic users to register with and comply with regulations overseen by the Financial Services Agency (FSA).
Bitget Begins User Verification Process
Bitget said existing customers who believe they have been incorrectly classified as Japanese residents must complete Level-2 identity verification by November 1.
The verification process requires users to provide additional information, including proof of address.
Accounts that fail to complete the verification process will be treated as Japanese accounts and subject to trading restrictions.
Beginning November 1, affected Bitget accounts will enter close-only mode, according to the company’s FAQ.
Users will no longer be able to:
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Open new trading positions
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Increase existing positions
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Use spot trading services
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Trade futures contracts
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Participate in copy trading
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Use trading bots
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Access Bitget’s earn products
Deposits, within applicable limits, and withdrawals will remain available. Bitget said it will forcibly close all remaining open positions on December 31 and suspend card services. Users will still be able to withdraw their assets after the deadline.
Bitget did not specify which regulatory development directly triggered the decision to leave Japan.
The exchange also did not immediately provide further details regarding its plans for Japanese users.
Japan has previously taken action against foreign cryptocurrency platforms operating without local approval. In 2023, regulators issued warnings to several overseas exchanges, including Bitget, Bybit, BitForex, and MEXC, stating that they were operating in Japan without proper registration and violating the country’s fund settlement laws.
Crypto Exchanges Face Growing Regulatory Pressure in Japan
Japan has historically maintained one of the stricter regulatory environments for digital assets, requiring crypto exchanges to meet registration, compliance, and consumer protection requirements before offering services locally.
Bitget’s exit highlights the growing pressure international crypto platforms face as governments worldwide increase oversight of digital asset businesses.
