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Gateio has announced it will <a href="https://www.gate.io/ja/state_compliance_tips" rel="nofollow noopener" target="_blank">stop</a> all services in Japan, including opening new accounts for Japanese residents, starting today. This is part of a legal compliance program to help users switch to crypto trading platforms that meet Japan’s regulations. 
Gateio has had a rocky relationship with the country. For the Japanese, Gateio was appealing for many reasons. First, it [reportedly] offered leverage of over 100 times, which attracted traders looking for higher returns.&nbsp; 
<img loading="lazy" decoding="async" class="alignnone wp-image-558790 size-full" src="https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-22-at-19.16.33.png" alt="Crypto exchange Gateio leaves Japan, shuts down all services" width="1920" height="1054" srcset="https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-22-at-19.16.33.png 1920w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-22-at-19.16.33-300x165.png 300w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-22-at-19.16.33-1200x659.png 1200w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-22-at-19.16.33-768x422.png 768w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-22-at-19.16.33-1536x843.png 1536w" sizes="(max-width: 1920px) 100vw, 1920px"> 
Second, the zero-cut system meant the exchange would cover negative balances caused by market fluctuations, protecting users from falling into debt. 
But Gateio wasn’t licensed by the Japanese Financial Services Agency (FSA), a requirement for legal operations in Japan. Despite this, it continued to serve Japanese users, as no law explicitly forbade residents from using overseas exchanges. 
Related: <a href="https://www.cryptopolitan.com/crypto-investment-products-pull-1-35-billion/">Crypto investment products pulled in $1.35 billion last week</a> 
This meant Japanese users were trading at their own risk since Gateio wasn’t under FSA oversight. The FSA requires exchanges to register and comply with specific regulations, including a leverage limit of 25 times, much lower than Gateio’s offering.&nbsp; 
Gateio was kind of smart with it, in that it didn’t actively market to Japanese users, avoiding direct confrontation with the FSA. Instead, it provided a Japanese version of its website.&nbsp; 
Related: <a href="https://www.cryptopolitan.com/nigeria-binance-unauthorized-banking/">Central Bank of Nigeria accuses Binance of unauthorized banking</a> 
Unlike other exchanges, Gateio didn’t actually establish a local entity in Japan. Major exchanges like Binance and Coinbase have received warnings from the FSA and have withdrawn from Japan.&nbsp; 
Binance left in 2022 after a warning but re-entered by acquiring a local exchange. Coinbase left last year after the regulatory warnings. BitMEX left in 2020 thanks to the same thing.

Crypto exchange Gateio leaves Japan, shuts down all services

Cryptopolitan_News

Alte articole publicate pe 22 iul. 2024

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