Japan has amended the way cryptocurrencies are regulated within the country, prompting BitMEX to begin restricting access to local residents, the exchange announced last week.
The move follows a cabinet order, released April 3, with amendments made to the Japan Financial Instruments and Exchange Act and Japan Payment Services Act effective as of May 1, 2020. The amended provisions to the operation of crypto exchanges include changes to advertising rules, user information and other such measures designed to “protect users,” the cabinet briefing said.
As a result, BitMEX announced it would be restricting access to local residents as of April 30, meaning newly registered Japanese users will not be able to execute a trade while any existing Japanese users will not be able to place orders or open new positions.
Positions currently still open as amendments to the Services Act come into effect will continue as normal until expiration, in accordance with the terms of a given contract.
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“We support the efforts of regulators to help establish standards for cryptocurrency products,” BitMEX stated in its announcement. “We will continue to work with the Japanese regulatory authorities to support their aims for the Japan market and will keep our Japan users updated.”
BitMEX has previously restricted users from other regions in the past, including Hong Kong and Bermuda, the Seychelles, Quebec in Canada, Cuba, Crimea and Sevastopol as well as Iran, Syria, North Korea and Sudan.
In 2019, BitMEX ran afoul with the U.S. Commodity Futures Trading Commission (CFTC) after the exchange was accused of allowing U.S. traders to use its platform via a virtual private network (VPN). U.S. citizens are currently banned from using the spot and derivatives cryptocurrency trading platform.