BitMEX announces restrictions for Japan users ahead of new digital currency laws

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Digital currency exchange BitMEX has announced new restrictions on users in Japan, ahead of upcoming changes to digital currency law in the country.

The Seychelles-based exchange said users in Japan would no longer be able to register new accounts effectively April 30, with existing customers prevented from taking new positions from May 1.

Open positions will be unaffected, and traders will be allowed to maintain these positions as normal, according to a statement released by the exchange.

The move is an effort from the exchange to comply with the latest amendments to the Japan Financial Instruments and Exchange Act and the Japan Payment Services Act, two key statutes governing the regulation of digital currency in Japan.

In the statement, the exchange said it would continue to work with regulators to “support their aims” in delivering compliant market access for its users.

“We support the efforts of regulators to help establish standards for cryptocurrency products that will underpin the advancement of this rapidly growing asset class. We will continue to work with the Japanese regulatory authorities to support their aims for the Japan market and will keep our Japan users updated.”

The amendments place a higher regulatory burden on exchanges, requiring digital currency firms to comply with a set of new provisions, including rules on advertisements, managing transaction and user records, and the disclosure of information to users and the regulator.

It comes amid ongoing efforts in Japan to tighten regulation for the digital currency sector and the businesses operating in it.

A number of exchanges currently operating in Japan are expected to follow suit, with their own response to the renewed laws.

As a result, digital currency users in Japan could soon find themselves with a much narrower range of options, as businesses aim to comply with the latest requirements of the regulator.