Exchange Hitbtc has suspended services for the people of Japan, to avoid problems from the financial regulator of the country, as she has no authority to operate in this jurisdiction. Users with a Japanese IP addresses will need to provide information about their place of residence in the procedure for KYC, to prove that they are nonresidents of the Country of the rising sun.
On its website Hitbtc has added a new section on the limitation of service terms of service. It said:
You may not use our services and should immediately stop doing this, if you are a resident (or intend to become a resident) of the country or region where Hitbtc is not authorized to conduct their activities.Hit Solution provides under the brand Hitbtc “markets of bitcoin, Ethereum, litecoin, Dogecoin, Monero, USDT and over 300 cryptocurrencies” in 2013, according to the website. The trading volume of the stock exchange for the last day amounted to $281 395 577.
The law on payment services entered into force to Japan in April last year, legalizing the cryptocurrency as means of payment. The same law obliges any cryptocurrency exchanges operating in the country to register with the financial services Agency (FSA). So far, the Agency has granted licenses to 16 exchanges digital currencies, and the same number of exchanges received permission to work while their application is considered (although eight of them withdrew the requests).
The Agency has also issued warnings to certain exchanges that operate without a license. Among them was Binance with the biggest daily trading volume. May 23, the FSA sent a letter to the Binance and its CEO Canino Zhao, warning that they work in Japan without a license. In April, the exchange Kraken announced the withdrawal from the Japanese market, citing the fact that compliance with the FSA rules, which became even tougher after the break Coincheck in January, is too costly.
Hitbtc announced that it cooperated with the Japanese law firm M&A and expects to resume service of the inhabitants of the land of the rising sun in the third quarter of 2018.