The announcement states that amendments made to the Japan Financial Instruments and Exchange Act and Japan Payment Services Act is the reason behind the decision. On the other hand, BitMEX has said that it will work with the “Japanese regulatory authorities to support their aims for the Japan market” and accordingly keep users updated.
Specifically, Japanese residents will not be able to trade, though open positions will be unaffected and it will proceed as stipulated by the contract. The announcement reads,
With effect from 23:00:00 JST 30 April 2020 (for users registering for the first time), and 00:00:00 JST 1 May 2020 (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 will be unable to trade and any existing registered customers who are Japan residents will not be able to place orders that would open a new position or increase an existing open position.
BitMEX is one of the most popular platforms for leverage trading, though it has been beaten by Huobi DM and OKEx, according to a report by TokenInsight. At $310 billion in trading volume for Q1 2020, it still remains a considerable powerhouse in the cryptocurrency derivatives market. It accounts for roughly 20% of the trading volume of the derivatives market.
BitMEX Chief Executive Officer (CEO) Arthur Hayes, whose opinion has sizable clout in the market, recently said that Bitcoin could drop to $3000 levels again, though he is confident that the price will rebound to $20,000 by the end of the year.