Bitget to Exit Japanese Market by Year-End Amid Regulatory Compliance

Bitget to Exit Japanese Market by Year-End

The cryptocurrency trading platform Bitget, currently ranked fifth by CoinGecko, has announced that it will cease operations in Japan by December 31, 2026. This decision comes in response to local regulatory changes, as the company has already stopped accepting new registrations from Japanese residents.

Regulatory Compliance Drive

The new regulations in Japan classify cryptocurrencies as financial instruments, following legislation that was passed by the Japanese parliament in mid-July. These regulations are set to take effect next year and include stringent penalties, such as fines of approximately $62,800 and prison terms of up to 10 years for operating without the required registration. In light of these developments, Bitget is taking steps to comply with local guidelines.

User Verification Required

Existing users who believe they have been incorrectly classified as Japanese residents must undergo a Level-2 identity verification process, which requires proof of address. This verification must be completed by November 1, 2026. Failure to do so will result in accounts being treated as Japanese, and those accounts will enter close-only mode, limiting access to services including spot and futures trading, trading bots, and other features.

Final Account Actions

From November 1, users in close-only mode will not be allowed to open or add to positions but can still withdraw and make deposits within limits. All remaining positions will be forcibly closed by December 31, when Bitget will also suspend card services. Users will still retain the ability to withdraw their assets after the shutdown date.

Background Concerns

Bitget’s decision follows a series of warnings issued by Japanese regulators to foreign crypto platforms, including Bybit, BitForex, and MEXC, regarding their operations without proper registration. The Japanese Financial Services Agency (FSA) oversees compliance for trading platforms, emphasizing the importance of adhering to local laws.