BitMex will ban Japanese merchants from its platform.
In a notice released a few minutes ago, the Seychelles-based cryptocurrency derivatives platform said effective April 30, new traders from Japan will be barred from creating accounts while registered clients will not be able to place new orders from May 1.
This is in response to a new cabinet message and amendments to the Japan Financial Instruments and Exchange Act and the Japan Payment Services Act which will take effect from May 1, 2022.
This is a blow, not only to traders but to the larger cryptocurrency ecosystem considering the ramp’s role as the largest in the world. Because it is one of the most liquid it allows free flow of funds in and out of Bitcoin and other supported digital assets.
Part of the notice reads:
“With effect from 23:00:00 JST 30 April 2022 (for users registering for the first time). and 00:00:00 JST 1 May 2022 (for existing registered users). we are restricting access to users who are Japan residents.”
“This will mean a user who is a Japan resident registering on the BitMEX platform for the first time cannot trade and any existing registered customers who are Japan residents cannot place orders that would open a new position or increase an existing open position.”
Emergence of Law
In 2022, the Japanese cabinet passed the Payment Services Act (PSA) and the Financial Instruments and Exchange Act (FIEA). Introducing new changes to regulate cryptocurrencies and digital asset trading and storage.
This law will essentially give digital assets legal status in the country. Dmana to date does not have a law that clearly defines what it is.
After enforcement, digital assets will be identified as crypto assets. Not a virtual currency with tighter controls on cryptocurrencies.
Under the FIEA, STOs and ICOs, which are new crowdfunding methods for blockchain-based projects will also be defined.
Cryptocurrency exchanges are also under the tight grip of the country’s main regulator, the FSA, will be required to segregate funds.
Japanese crypto exchanges will be required to obtain services from third parties to store client funds. In addition, all forms of crypto derivatives will now be regulated by the FIEA.