Hitbtc, a cryptocurrency exchange platform has suspended its services for Japanese residents. Clients with Japanese IP addresses will have to follow know-your-customer(KYC) procedure and give their residency information to prove they are not residents of Japan. The platform wants to avoid any trouble with the Japanese financial regulator as it is not authorized to operate in Japan.
Hitbtc has inserted a new section called service suspension for Japanese residents to the Legal Information page of its Terms of Service page on its website.
This section says that
“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”
Since 2013, HitBTC has been providing markets for Bitcoin, Ethereum, Litecoin, Dogecoin, Monero, USDT, and more than 300 cryptocurrencies in total.
The terms of service section further added that
“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 your residency within KYC procedure. If you are not a resident of Japan and interested in opening a verified PRO account, you can do this with the help of our partner Sequant Capital Limited, an FCA-regulated UK broker company.”
Financial Service Agency of Japan has given permit to 16 cryptocurrency exchanges to operate and around 16 were pending, which still operate in Japan as the country has adopted cryptocurrencies as mode of payment, So it is mandatory to register itself with Japan’s Financial Service Agency to get a legal status.
According to Bitcoin.com, Hitbtc has disclosed that it has been working with a Japanese law firm with the aim “to get Hitbtc through the local subsidiary setup and licensing procedure to resume its services” for Japanese residents.
Company further said that
“The company is actively hiring for the local office and exploring M&A opportunities to expedite the launch of the Japanese operations in Q3 2018”