Huobi joins the ever-growing list of crypto firms that are leaving Japan due to strict restrictions imposed by the country’s FSA. The exchange notified Japanese customers that it will suspend services for this country from today, July 2nd.
Huobi leaves Japan on July 2
Until recently, Japan has been known as one of the most crypto-friendly countries around the world. However, in order to maintain some balance and stability, the county’s FSA introduced strict regulations, resulting in a number of crypto-related companies relocating, the latest of which is Huobi Pro.
According to the company’s recent announcement, it will soon remove its website’s Japanese page, and Japan’s residents will no longer receive service from the exchange.
According to Huobi’s disclaimer page, the exchange is dealing with digital assets via the telecommunication network and the internet. Their activities are in compliance with the current laws of all the countries in which it operates, with Japan being the only exception.
In Japan, the current laws require crypto exchanges to register as virtual currency exchange businesses to bring them in line with law regarding Japan’s funds settlement. Since Huobi is not registered, it doesn’t have the permission to conduct its business within Japan.
FSA’s regulations are too sudden, claim experts
Huobi clearly states that it respects the country, its laws, and its citizens, but Japan’s FSA’s constantly-changing sanctions are creating an unpredictable environment. According to the company, these rules and regulations will definitely help out the local cryptocurrency industry but foreign exchanges find it much more difficult to comply with these laws and receive proper documents that are needed in order for them to continue business as usual.
According to speculation, despite the fact that China has officially banned cryptocurrency trading, many believe that the country is still deeply interested in the concept. Some reports even claim that there is a real chance that this ban might soon be revoked. If true, this will provide a completely new market for all the exchanges and companies leaving Japan.
The price of Bitcoin, which has been dropping lately, has started to improve once again. Its recent drops reached the new low of $5,983 per coin, and many expected that the price will go even further down with the situation in Japan and the recent development regarding exchanges. This, however, did not happen, and Bitcoin may be on the rise once more. It is currently valued at $6,412 per coin, according to CoinMarketCap.