According to Coinmarketcap, Hitbtc is the world’s eighth largest crypto exchange.
On its website, the Hong Kong-based exchange added a new section called Service Restriction to the Legal Information page of its Terms of Service. “You shall not use our services and immediately cease using those if you are a resident or become a resident at any time of the state or region where Hitbtc is not authorized to act,” the exchange wrote, adding:
For the avoidance of any doubt and in accordance with the Japan Payment Services Act, Hitbtc has temporarily suspended providing virtual (crypto) currency exchange services to residents of Japan.
The exchange elaborated, “In case our technology detects that you use our services from an IP address registered in Japan, or any other services registered in Japan, you would be asked to confirm that you are not a resident of Japan by providing information on your residency within KYC procedure.”
HitBtc subsequently posted a notice on its website on Sunday confirming the suspension, reiterating that it “will apply only to those living in the country.”
By suspending it’s activities in Japan, the Crypto exchange company is avoiding trouble with the regulator.
The Financial Services Agency (FSA) mandates any crypto exchanges operating in the country to register with the country’s financial authority. So far, 16 crypto exchanges have been granted a license to operate and the same number were allowed to operate while their applications are pending.
Hitbtc has however revealed that it has been working with a Japanese law firm with the aim “to get Hitbtc through the local subsidiary setup and licensing procedure to resume its services” for Japanese residents.