Bitget, one of the world’s largest crypto exchanges and ranked fifth on CoinGecko, is preparing to leave the Japanese market and will close all remaining user positions by the end of the year.
The exchange announced that it will stop offering cryptocurrency trading services to customers in Japan, citing the need to comply with the country’s evolving regulatory framework.
Bitget stopped accepting new registrations from Japanese residents on Sunday, according to a Monday statement. The platform currently ranks fifth on CoinGecko, recording around $714.7 million in trading volume over the previous 24 hours.
Japan recently approved legislation that places cryptocurrencies under the category of financial instruments, introducing stricter oversight for digital asset businesses. The updated framework is expected to take effect next year and includes penalties for operating without proper registration, including fines of roughly $62,800 and possible prison sentences of up to 10 years.
The exchange said users who believe they have been mistakenly identified as Japanese residents must complete Level-2 verification by Nov. 1. This additional verification requires documents such as proof of residential address. Accounts that do not complete the process will remain classified as Japan-based accounts.
From Nov. 1, affected accounts will be restricted to close-only mode, according to Bitget’s frequently asked questions page. Users will no longer be able to open new trades, increase existing positions, or access services including spot trading, futures contracts, copy trading, automated trading bots, and earning products. Deposits, subject to restrictions, and withdrawals will continue to be available.
Bitget said any remaining open positions will be automatically closed on Dec. 31, when it will also suspend its card services. Users will still be permitted to withdraw their assets after the deadline.
The Seychelles-registered exchange did not specify which particular regulatory development prompted the move and did not immediately provide additional comments when contacted.
Under Japan’s regulatory framework, crypto exchanges serving domestic customers must register with the Financial Services Agency (FSA) and follow the country’s compliance requirements. Japanese regulators have taken a strict approach toward foreign platforms operating without approval.
In 2023, Bitget, along with Bybit, BitForex, and MEXC, received warnings from Japanese authorities over allegations that the platforms were providing crypto services in the country without proper registration, potentially breaching Japan’s fund settlement regulations.
