Bitget said it will stop providing crypto trading services to residents of Japan, citing efforts to comply with local regulations.
The crypto exchange, ranked fifth by Coingecko with trading volume of roughly $714.7 million over the past 24 hours, stopped accepting new registrations from Japanese residents on Sunday, according to a Monday announcement.
Japan reclassified cryptocurrencies as financial instruments following legislation approved by its parliament in mid-July. The new rules are expected to take effect next year and include fines of about $62,800 and prison sentences of up to 10 years for operation without registration.
Existing users who believe Bitget has incorrectly identified them as Japanese residents must complete a Level-2 identity verification, including proof of address by Nov. 1, the company said. Accounts that do not complete the process will be considered Japanese, it added.
Bitget will place those accounts into close-only mode starting Nov. 1, according to its FAQ. Users will not be able to open or add to positions or use services, including spot and futures trading, copy trading, trading bots and their earn products. Deposits, subject to limits, and withdrawals will remain available.