Bitget Plans Japan Exit as Crypto Exchange Winds Down Local Operations by Year-End

Bitget, the crypto exchange ranked fifth on CoinGecko, has announced plans to stop serving users in Japan and will wind down its remaining positions by the end of the year.

The platform said it is discontinuing cryptocurrency trading services for Japanese residents as part of its efforts to align with local regulatory requirements.

According to a Monday announcement, Bitget halted new registrations from users in Japan on Sunday. The exchange currently ranks fifth on CoinGecko, with approximately $714.7 million in trading volume over the past 24 hours.

Japan recently approved legislation that reclassifies cryptocurrencies as financial instruments, bringing digital assets under a stricter regulatory framework. The new rules are expected to come into force next year and introduce penalties for unregistered operators, including fines of around $62,800 and prison terms of up to 10 years.

Bitget said users who believe they have been incorrectly classified as Japanese residents must complete Level-2 identity verification by Nov. 1. The process requires additional documentation, including proof of address. Accounts that fail to complete the verification will continue to be treated as Japan-based accounts.

Starting Nov. 1, those accounts will be moved into close-only mode, according to Bitget’s FAQ. Users will no longer be able to open new positions, increase existing positions, or access services such as spot trading, futures, copy trading, trading bots, and earning products. Deposits, within applicable limits, and withdrawals will still be available.

The exchange plans to automatically close all remaining positions on Dec. 31 and will also discontinue card services. Customers will retain the ability to withdraw their funds after the shutdown date.

The Seychelles-based company did not disclose whether a specific regulatory event triggered the decision and had not provided further details in response to requests for comment.

Crypto platforms serving Japanese customers are required to register with and follow regulations established by Japan’s Financial Services Agency (FSA). The country has maintained a strict stance toward overseas exchanges operating without proper authorization.

In 2023, Bitget, along with Bybit, BitForex, and MEXC, received warnings from Japanese authorities for allegedly offering services in the country without registration, potentially violating Japan’s fund settlement regulations.