European cryptocurrency exchange HitBTC has suspended services for people in Japan to avoid problems with the financial regulator of the country due to the lack of work permits in its territory.
On the HitBTC website has a new section «Restriction of services» and the page «Legal information» in the section «Terms of service», which refers to the prohibition to use the services of the exchange and immediately stop using them if you are or become a representative of the region where HitBTC is not authorized to work.
«If our technology detects that you are using our services from an IP address registered in Japan, you will be asked to confirm that you are not a resident of this country, providing information about your residence in the procedure for KYC,» reads the website.
The law on payment services Japan referred to HitBTC, entered into force in April 2017, legalize crypto-currencies as means of payments, and by obliging all crypto currency exchange, operating in the country to be licensed by the financial services Agency (FSA).
Still the license was granted 16 cryptomeria. The same amount is pending the receipt of a license, while continuing to work. Recently the FSA announced that from 16 stock exchanges 8 withdrew their applications.
The Agency also issued a warning to some exchanges that operated in Japan without a license. Among them – the head of the list of the world’s largest kryptomere Binance.
In April, the exchange Kraken announced about the withdrawal from the Japanese market, citing the high costs required for compliance with the FSA rules, which became stricter after the break Coincheck in January.
According to the HitBTC exchange works with Japanese law firm to obtain a licence from the regulator for the speedy resumption of its services to Japanese residents, the launch of which is planned for the third quarter of 2018.