Due to unauthorize financial regulatory, Hitbtc has suspended its services in Japan. The citizens with Japanese IP addresses were asked to provide their residency details within exchange’s KYC process to prove they are not resident of Japan.
Hong Kong crypto exchange, Hitbtc has announced a service suspension for Japanese residents. However, it is to avoid any doubt in accordance with Japan Payment Service, Hitbtc has stopped crypto service for now.
Infact, the official website of Hitbtc added a Service Restriction section to the legal information page in Terms of Service.
“You shall not use our services and immediately cease using those if you are a resident or become a resident. And at any time of the state or region where Hitbtc is not authorizing to act”.
The Hitbtc exchange claims for confirmation on residency information with KYC process. If technology detects that someone uses our services from a Japan IP address. However, on Sunday, June, 3rd 2018 Hitbtc official announced on website combining that service suspension for only those who resides in Japan.
Preventing Regulatory Trouble
The Hitbtc refers Japanese Payment Service which highlighted last year in month of April. However to legalize crypto assets as a mode of payments. Further, in order to operate any crypto exchanges in the country, users should register with the FSA (Financial Services Agency). Till now, 16 crypto exchanges have been approved and thus Hitbtc is in pending list.
Several crypto exchange firms have been warning for operating without a license in the country. Recently, Binance CEO Changpeng Zhao and its representative received a warning letter from FSA agency about operating without license.
Additionally, the HitBtc’s official announcement reveled that it is planning to launch its regulate Japanese operations in Q3, 2018 very soon. It added:
“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.”