The BitMEX cryptocurrency exchange has announced that it will restrict the Japanese population from trading on their stock exchange. This means that they will no longer be able to register or trade. She wrote it on her blog on Tuesday.
Prohibition of trade from 1 May
BitMEX announced on its blog on Tuesday that it will restrict Japanese residents from registering on the platform starting on April 30 and will ban the use of this platform starting on May 1 for existing Japanese users.
According to BitMEX, existing Japanese users will not be able to enter orders that would open a new position or increase an existing open position. Open positions will not be otherwise affected and will continue in accordance with the terms of the relevant contract.
Response to changes in Japanese law
The restrictions are a response to changes in the Japanese Financial Instruments and Exchanges Act and the Japanese Payment Services Act, which have been in effect since 1 May 2020. However, BitMEX has committed to continue working with Japanese regulators to support its targets for the Japanese market.
However, BitMEX does not slow down in investing
Although BitMEX has withdrawn from its presence in Japan, the stock market continues to invest in CoinDCX. It plans to expand to other geographical areas, including India. The company announced that on May 5, 2020, Quanto would launch an ETH / USD futures contract. The new product will be the first of its kind on the market. The stock exchange also launched a new trading pair on its platform in February, XRP for USD with leverage.
This is not the first time BitMEX has struggled with regulators. The stock exchange was allegedly investigated by the US Commodities and Futures Trading Commission for allowing US-based traders to use its platform in December 2019 without its permission.
A ban on trading for Japanese residents is bad news for the stock market, but it should not restrict it in any way. This year, the platform is trying to expand to several countries, where it will gain its clients. However, this does not mean that the stock exchange will be closed permanently. As you may have learned above, the company is working with the government of the country to resolve the necessary documents to operate in the market.
