Crypto exchange Bitget will stop accepting new registrations from Japanese users, announcing a phased exit that culminates in forced position closures by December 31, 2026.

The withdrawal comes as Japan tightens its licensing regime and grapples with severe currency turbulence.

The Timeline Japanese Users Now Face

The announcement, dated August 3, sets a clear timeline. Accounts flagged as potentially Japanese must complete that verification by November 1, 2026. Failure triggers restrictions. Users who miss the deadline face phased limitations from that date, with any remaining open positions forcibly closed by the end of December.

The exchange will email withdrawal instructions to affected users, framing the decision as part of its ongoing commitment to regulatory compliance.

The regulatory backdrop explains the move. Japan requires crypto service providers serving local residents to register with the Financial Services Agency under the Payment Services Act.

Follow us on X to get the latest news as it happens.

Enforcement risk is real for unregistered platforms. The agency issued warnings to Bitget and other overseas exchanges in November 2024. Consequences followed. Bitget’s app was later removed from Japan’s App Store, though web and Android access remained available to existing users.

Few jurisdictions demand more. Providers must meet capital, custody, consumer-protection, and anti-money-laundering standards to operate legally.

How Japan’s Yen Turmoil Compounds the Regulatory Burden

The timing coincides with acute currency pressure. The yen slid toward a 40-year low near 164 per dollar in late July, driven by rate differentials and carry-trade activity. Japan responded aggressively, with estimates suggesting authorities spent tens of billions of dollars buying yen to halt the decline.

“They have a weakening yen, and they wanted a little bit of help. And we’re always there for Japan,” US President Donald Trump told reporters on Sunday.

Washington then joined the effort. Both countries conducted a rare coordinated intervention, the first in 15 years, targeting excessive volatility and disorderly movements. The response was immediate, with the yen rebounding sharply and briefly reaching 155 per dollar.

Officials signaled more could follow. Finance Minister Satsuki Katayama and US Treasury Secretary Scott Bessent confirmed the operation and indicated readiness for further action.

The two pressures compound each other. Strict licensing raises fixed costs, while currency volatility complicates pricing and treasury management for offshore operators.

Bitget’s exit illustrates a broader pattern. Platforms must either invest heavily in registration or leave markets where regulatory barriers make operations uneconomical.

Japanese users still have room to act, with the transition window running until year-end before restrictions take full effect.

Subscribe to our YouTube channel to watch leaders and journalists provide expert insights.

Source: BeInCrypto