Crypto Exchange Gateio Halts Services in Japan to Comply with Local Regulations
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Gateio has announced it will halt all operations in Japan, effective immediately, including new account registrations for Japanese residents.
This decision aligns with a legal compliance initiative aimed at guiding users towards crypto platforms that meet Japanese regulations.
Gateio has long attracted Japanese traders with its high leverage options, reportedly over 100 times, and a zero-cut system that protected users from debt due to market volatility. However, Gateio lacked the necessary license from Japan’s Financial Services Agency (FSA), which oversees legal crypto operations in the country.
Despite operating without FSA approval, Gateio continued to serve Japanese users, as there were no explicit laws preventing residents from using foreign exchanges. This left users vulnerable, trading without FSA oversight, which mandates a leverage cap of 25 times.
To avoid direct conflict with the FSA, Gateio didn’t market directly to Japanese traders but provided a Japanese-language website. Unlike other major exchanges such as Binance and Coinbase, which faced regulatory warnings and exited Japan, Gateio did not establish a local entity in the country.
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