Bitget, one of the world’s top crypto exchanges, has announced it will stop servicing Japanese users and shut down all open positions by December 31. The decision follows Japan’s recent push to regulate foreign crypto platforms more strictly and treat cryptocurrencies as financial instruments with hefty penalties for noncompliance.
Regulatory Pressure Forces Bitget’s Withdrawal
Last Sunday, Bitget stopped accepting new registrations from Japanese residents. The exchange, ranked fifth globally by CoinGecko with a 24-hour trading volume near $715 million, cited compliance with Japan’s tightened regulations as the reason. The country’s parliament passed new legislation in mid-July that reclassifies cryptocurrencies as financial assets, imposing fines up to $62,800 and prison sentences reaching a decade for platforms operating without registration.
Account Restrictions and Forced Closures
Existing users flagged as Japanese residents must verify their identity to avoid restrictions. Bitget requires Level-2 KYC, including proof of address, by November 1. Accounts failing to comply will be locked into a close-only mode, blocking any new trades or additions to positions across spot, futures, and copy trading, as well as trading bots and earn products. Withdrawals and deposits will still be possible within limits.
By the end of the year, Bitget will forcibly close all remaining positions and suspend card services for Japanese users. While the company is registered in Seychelles, it did not specify which regulatory action triggered the exit. The move aligns with a broader pattern of crypto firms adjusting operations amid Japan’s regulatory overhaul, as seen in other cases like Bitget phasing out services earlier this year.
This material is for informational purposes only and is not financial advice.
