An important announcement arrived from the BitMEX exchange, informing users in Japan that the trading service will be terminated starting April 30th for new users and May 1st for old users.
As explained in the statement, a user residing within Japanese territory will no longer be able to open new positions or place new orders; all previous orders and positions will continue until their termination, according to the contract.
The drastic decision was taken following the publication of the amendments called the Japan Financial Instruments and Exchange Act and the Japan Payment Services Act which will enter into force on May 1st and which impose very precise rules regarding cryptocurrencies.
Specifically, there are rules and procedures that define standards for those who operate, on behalf of third parties, in the crypto management sector, as for example exchanges such as BitMEX.
Among the various rules that will have to be adopted, the amendment explains how funds must be managed with cold wallets, what percentage of user funds can be held on the platform, the obligation to do an audit and other rules of various kinds that those who operate in Japan in the crypto sector will have to implement.
BitMEX is in favour of this regulation and has confirmed that it will work with the local authorities to fulfil its duties and allow users to operate with peace of mind, despite the fact that it will have to stop its services at the moment. Perhaps in the future, after fixing the platform, it will be able to allow Japanese users to continue managing funds and operating on the platform.
As it is known, regulation in this area sometimes leads to the closing or relocation of the registered office in other more crypto-friendly states, especially because the fines but also the costs to adapt these measures are huge and so often companies prefer to close or exclude certain areas.