Bitget Exits Japan: Exchange to Close Positions by Year-End Amid Regulatory Pressure

Woofun AI reports that Bitget is executing a strategic exit from the Japanese market, driven by the imperative to comply with local regulations. The exchange has announced it will close all remaining positions by year-end, effectively ending its service provision to residents in the region.

The operational shutdown began on Sunday, with a formal announcement issued on Monday stating that new registrations from Japanese residents are no longer accepted. Existing users identified as Japanese must complete Level-2 identity verification, including proof of address, by Nov. 1; those failing to do so will be classified as Japanese residents. Starting Nov. 1, these accounts will enter close-only mode, restricting access to spot, futures trading, copy trading, trading bots, and earn products. While deposits (subject to limits) and withdrawals remain available, the exchange will forcibly close all remaining positions on Dec. 31 and suspend card services, though asset withdrawals will continue post-deadline.

Woofun AI data shows the exchange, ranked fifth by Coingecko with $714.7 million in 24-hour volume, is prioritizing regulatory alignment over market retention.

This move follows Japan’s mid-July parliamentary legislation reclassifying cryptocurrencies as financial instruments, with rules taking effect next year. Non-compliance carries penalties of up to $62,800 in fines and 10 years in prison. The Seychelles-registered company did not specify a single regulatory trigger but operates under the oversight of the Financial Services Agency (FSA). The exchange did not immediately respond to requests for further clarification on the decision.

Japan has maintained a strict stance against unregistered foreign platforms, having issued a warning letter in 2023 to Bitget, Bybit, BitForex, and MEXC for violating fund settlement laws. This enforcement pattern underscores the escalating risks for global exchanges operating without local registration.