Cryptocurrency exchange Huobi Pro is to cease offering trading services to investors living in Japan starting from next month.
According to a news report from Coinpost, the exchange announced the news in an email sent to investors in Japan on Wednesday, stating it will remove the Japanese option from its homepage and suspends trading services from July 2.
In a response to a CoinDesk enquiry, Huobi Pro – currently the third largest exchange in the world by 24-hour trading volume – confirmed the news, but has yet to provide further details such as the plan for users' asset withdrawals.
As suggested in the Coinpost report, Huobi Pro made the decision to withdraw Japan-based services because is not registered with the Financial Services Agency (FSA), Japan's financial watchdog, as mandated under a money transaction law introduced in 2016. It is not currently clear if the exchange has been contacted by the FSA over the issue.
Earlier this year, Huobi Pro indicated it was partnering SBI Virtual Currency – the licensed exchange backed by Japanese financial giant SBI Holdings – to launch a regulated platform in Japan. However, the plan was notably scrapped by SBI Virtual Currency back in March.
According to web traffic tracking site Alexa, currently 13.3 percent of the visitors on Huobi Pro come from Japan. The company would not indicate to CoinDesk when asked if it is considering filing a registration application with the FSA as a next step.
In March, Binance, currently the second largest cryptocurrency exchange by trading volume, notably received a warning from the FSA stating that, as a foreign entity, it was offering trading services to Japanese residents without a license. Binance confirmed at the time that its legal team was in dialogue with the agency.
Traffic light image via Shutterstock
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
Jiang Zhuoer: BTC.Top Will Support the Camp Favored by a Majority of Hash Power in the Bitcoin Cash Hash War
Jiang Zhuo’er and his BTC.TOP , a major Chinese mining pool, will not take side in the upcoming Bitcoin Cash’s hash war between two competing camps, Bitcoin ABC and Bitcoin SV. Zhuo’er shared h
F2Pool Will Support the Mining of BCHABC and BCHSV after Bitcoin Cash Hard Fork
F2Pool, the sixth largest bitcoin mining pool in the world, announced on Tuesday that it will allow miners to mine both coins generated from the upcoming Bitcoin Cash hard fork after the chain split
IBM Says Blockchain Can Power 'Open Scientific Research' in New Patent Filing
A patent application published Thursday claims the process of conducting scientific research can benefit from the blockchain.
Led by a team at IBM's Watson Research Center, the patent application p
CFTC Fines Bitcoin Trader $1.1 Million for Crypto Fraud
The U.S. Commodity Futures Trading Commission (CFTC) has jailed a bitcoin trader and fined him over $1 million for running a fraudulent bitcoin and litecoin scheme.
According to a press release iss
Japanese Firms Claim Success in Marine Insurance Blockchain Trial
One of Japan's largest insurance companies, Tokio Marine & Nichido Fire Insurance, and IT firm NTT DATA have completed a trial that put the paperwork for marine cargo insurance claims on a blockchain.
Accenture Puts Software License Management on a Blockchain Platform
Global professional services giant Accenture has rolled out a new software license management application built with tech from distributed ledger startup Digital Asset.
Accenture announced in a pre
Singapore's Central Bank, SGX Develop Blockchain Settlement System
The Monetary Authority of Singapore (MAS) and the country's stock exchange, Singapore Exchange (SGX), have developed a settlement system for tokenized assets that can work across different blockchains
Colorado Regulators Crack Down on Four More ICOs
Colorado regulators took action against four ICOs Thursday, bringing the state's total number of cease-and-desist orders against crypto startups to 12.
The state's "ICO Task Force" rebuked Bitcoin