Japan has changed the way cryptocurrencies are regulated in the country, prompting BitMEX to start restricting access to local residents, the exchange announced last week.
Japan has amended the way cryptocurrencies are regulated within the country, prompting BitMEX to begin restricting access to local residents, the exchange announced last week.
The move follows a cabinet order issued on April 3, with amendments to the Japan Financial Instruments and Exchange Act as of May 1, 2020. The amended crypto exchange operating provisions include changes to advertising rules, user information, and other such measures to “protect users,” the cabinet briefing said.
As a result, BitMEX announced that access to local residents would be restricted as of April 30, meaning that newly registered Japanese users will not be able to execute a business while existing Japanese users will not be able to place orders or open new positions.
Positions that are currently open as amendments to the Services Act enter into force will continue as normal until expiry, in accordance with the terms of a contract.
“We support the efforts of regulators to help establish standards for cryptocurrency products,” BitMEX stated in its announcement. “We will continue to work with the Japanese regulatory authorities to support their aims for the Japan market and will keep our Japan users updated.”
Previously, BitMEX had restricted users from other regions in the past, including Hong Kong and Bermuda, the Seychelles, Quebec in Canada, Cuba, Crimea and Sevastopol, as well as Iran, Syria, North Korea and Sudan.
BitMEX had run afoul with the U.S. in 2019. Commodity Futures Trading Commission (CFTC) has been accused of allowing U.S. traders to use its platform via a virtual private network (VPN) following the exchange. Currently, U.S. citizens are prohibited from using the Cryptocurrency trading platform for spot and derivatives.