BitMEX to restrict all Japanese users from its Platform

[chaintee8989]

According to newly passed Japan, Financial Instruments and Exchange and, Japan Payment Services Act amendments, the exchange has announced it will restrict Japan residents from new account registrations starting from April 30th, 2020, and forbid existing users to place an order from May 1st, 2020.

The amendment also stated that crypto businesses require to register with the regulatory agencies and comply with relevant provisions.

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[jackg]

When does the act come into force or how long is the current transition period? What's the chances it gets revoked or changed...

Regulation in the space is generally both good and bad and I don't think bitmex had many Japanese traders anyway, (couldn't they just move over to somewhere that might seek licenses such as binance)?

[avikz]

Link to the news: https://www.financemagnates.com/cryptocurrency/news/bitmex-to-restrict-access-to-japanese-traders/

It seems like Japan has learnt from the previous mistakes and numerous hacks that happened in past two years starting with Coincheck. So now all exchanges that allows Japanese people will have to register with Japan's regulatory authoriry. I am surprised why other exchanges have not yet taken any such decisions and why only Bitmex!!

[sunsilk]

I am surprised why other exchanges have not yet taken any such decisions and why only Bitmex!!

Yeah, if it's already a regulation in Japan and it's a must be applied I'm also curious why other exchanges haven't reacted yet. Maybe, they are in the middle of assessing and weighing the situation and if they would be willing to do the same decision as Bitmex.

Another source from cointelegraph: Facing Mounting Regulation, BitMex Closes Japan Service

[dothebeats]

Pretty crazy how fast everything is for Bitmex upon the announcement of the new regulation in Japan. May 1st is literally over a day from now and traders would need to close their positions ASAP else they wouldn't be able to deal with the exchange for the time being.

I don't know why Bitmex wouldn't want to procure their Japanese license for such dealings and acted to shut the market completely on the country. While it look like there's not much happening on the Japanese market, shutting off the platform abruptly from a potentially booming market seems to be a premature call. Either way, once everything is understood on the Japanese front, perhaps Bitmex could reopen their doors to the Japs.

[hugeblack]

I do not think that it is more than just a new framework for regulatory laws, but I hope that the platform can meet the new standards, otherwise traders will suffer a lot of losses.
Generally, regulatory laws change periodically, and it is easy to reopen the activity again.

The strange thing is, why BitMEX did not issue a warning for a longer time, or if the platform was not given an opportunity two months or more before it could improve its conditions.

[joinfree]

This is quite sad and unfortunate to our fellow Japanese who use Bitmex platform for their trading activities. Well, I guess they can use either Binance or Bittrex for all their leverage trading as well and I hope Bitmex gives them sometime to withdraw all their funds before finally restricting them.

[Lucius]

When does the act come into force or how long is the current transition period?

the exchange has announced it will restrict Japan residents from new account registrations starting from April 30th, 2020, and forbid existing users to place an order from May 1st, 2020.

What from OP (I bold it for you) is not clear enough for you? OP is not edit his post, so you didn't bother to read anything but the title


Japan is known for perhaps the most stringent licensing laws when it comes to crypto trading, and from May 1, 2020 these laws are updating with some new rules. Obviously, BitMEX cannot or does not want to meet these new conditions and Japanese citizens will not be able to use their services, as is the case with some other countries like USA.

[Smitty Werben Man Jensen]

According to newly passed Japan, Financial Instruments and Exchange and, Japan Payment Services Act amendments, the exchange has announced it will restrict Japan residents from new account registrations starting from April 30th, 2020, and forbid existing users to place an order from May 1st, 2020.

The amendment also stated that crypto businesses require to register with the regulatory agencies and comply with relevant provisions.

when the price of Bitcoin rises naturally if there is bad news to be able to make the price collapse again, but I am sure with the news from Bitmex this will not make the price of Bitcoin affected, the price has returned Bullish, but it is unfortunate if Bitmex does a restrict  all Japanese users

[Febo]

According to newly passed Japan, Financial Instruments and Exchange and, Japan Payment Services Act amendments, the exchange has announced it will restrict Japan residents from new account registrations starting from April 30th, 2020, and forbid existing users to place an order from May 1st, 2020.

The amendment also stated that crypto businesses require to register with the regulatory agencies and comply with relevant provisions.

Japan was very progressive with crypto 5 years ago. Now it seems they are falling behind. They prohibit their citizens to be part of crypto revolution. Japanese people should react. Tell the government what kind of country they want to live in.

[Lucius]

Japan was very progressive with crypto 5 years ago. Now it seems they are falling behind. They prohibit their citizens to be part of crypto revolution.

Being progressive does not mean letting everyone do what they want, does anyone normal wants new Mt.Gox or Coincheck? What about USA where BitMEX is also restricted, or maybe province of Québec in Canada? What you wrote has nothing to do with preventing anyone from being part of the crypto revolution since Japan has 23 crypto exchanges, enough that BitMEX doesn't miss them at all.

https://www.fsa.go.jp/menkyo/menkyoj/kasoutuka.pdf (translated version)

[Leonardo7]

I think the Japanese government is trying to protect her citizens from future exchange hacks and especially shitty exchanges that carry out backdoor fraud and blame it on attacks. Smaller exchanges that operate without their team been known won't care about this. Very soon exchanges and projects will start restricting Japanese as they do to China and the USA.

[leyton11]

According to newly passed Japan, Financial Instruments and Exchange and, Japan Payment Services Act amendments, the exchange has announced it will restrict Japan residents from new account registrations starting from April 30th, 2020, and forbid existing users to place an order from May 1st, 2020.

The amendment also stated that crypto businesses require to register with the regulatory agencies and comply with relevant provisions.

It seems that the Japanese have made a lot of profit at the Bitmex exchange.  In Japan, they knew the advantages of bot trading, so they created quite a lot of bots and that made Bitmex exchange quite a lot of losses in trading.  I think this is the main reason why they are forced to ban Japanese trading there.  The Japanese are too smart for this transaction, maybe in the near future the Japanese will be excluded from many margin exchanges soon.  do you think so ?

[LeGaulois]

I don't like a lot Bitmex so I would say the site should restrict itself to be online too, lol.

As for the Japanese citizens, I don't think it will really be a loss for them. Either they use a VPN ( if Bitmex allows it) or move to another alternative like Deribit. What is attracting people to Bitmex is just the Futures and the x100 leverage and it's not the only one to have the feature.

One thing is sure, Bitmex being located in Seychelles and Hong Kong is surely not interested to be compliant with any jurisdiction

In Japan, they knew the advantages of bot trading, so they created quite a lot of bots and that made Bitmex exchange quite a lot of losses in trading.

Bots don't do anything harmful, it's rather the opposite and helps the platform to make more money. (the platform use bot itself by the way)
Banks use bots too if it was a damage for the finance they'd be shut down already.

[Viscore]

Where is the source of information?

This is not a good news for Bitmex but people can choose other ways getting into crypto, like trading in an exchange for the meantime.
I think day trading is also a good way too as long as the exchange has a good volume, or maybe buy and hold, they just have to live based on what is available in the market as it's hard to break a regulation, we know the consequences.

[logfiles]

Regulations are starting to bite on Crypto derivative exchanges. Very soon we shall see enforced KYC on most them too. It's so easy to launder money through those platforms as of now which will make them a soft target for regulators.

As for the Japanese citizens, I don't think it will really be a loss for them. Either they use a VPN ( if Bitmex allows it) or move to another alternative like Deribit. What is attracting people to Bitmex is just the Futures and the x100 leverage and it's not the only one to have the feature.

Bitmex is the biggest one of them all, It means the rest of those derivative platforms like Deribit, Bybit will also bow down to pressure from the regulators.

Where is the source of information?

Members just shared 2 links to the news including one from cointelegraph

[stompix]

Oh, what a surprise
The moment exchanges are faced with the fact they must obey the same regulations they have asked for years they choose to run away...

One thing is sure, Bitmex being located in Seychelles and Hong Kong is surely not interested to be compliant with any jurisdiction

Deja-vu here, who was located in Malta and Bermuda and has also fled Japan?
Starting to see a pattern here 

Japan was very progressive with crypto 5 years ago. Now it seems they are falling behind. They prohibit their citizens to be part of crypto revolution. Japanese people should react. Tell the government what kind of country they want to live in.

Yeah, I'm pretty sure everyone will flee Japan and start living in Gabon or Senegal where you can freely access Bitmex. 
Already there is a crash in Japan's GDP of 123% because they are not participating in the crypto revolution.

[Harlot]

Them backing out from Japan just because they need to re-register their license there just shows that they aren't really interested in the market at all or is avoiding other additional regulations set in place by that country. There is also a possibility that them not being a popular exchange in Japan also plays a big factor on why they don't want to continue their operations since it will also add additional cost to them just to apply again their permit in Japan or are they just plainly avoiding the new regulations at all and they are just worried that the Japanese government will catch them onto something?

[fabiorem]

I just imagine the face of those traders who keep screaming "muh freedom to dump bitcoin to $100" when such regulations come.