Residents of Japan who are using Huobi as their cryptocurrency exchange received a troubling email on Wednesday stating that the exchange would be closing the doors on them. The exchange used to be the biggest in China but has been reinventing itself in Hong Kong.
The reason that Huobi had to flee China was because of the regulatory pressure placed on exchanges, and it seems that a similar situation is happening in Japan where the exchange crackdown continues to grow.
Cutting Japan out
Huobi is now reportedly planning to remove the whole Japan page from its website from July 2, and as such it will stop providing trading services to any Japanese residents. Although the announcement is not yet visible on the official company homepage, further details are expected to appear soon, a Telegram administrator for Huobi said.
Businesses improvement orders
In Japan, the FSA, Financial Services Agency, has been hard at work looking into different exchanges and how they run their businesses, dishing out a multitude of businesses improvement orders.
These orders have forced a number of exchanges to close their doors in Japan, and with Huobi operating business to Japanese citizens, it may not be based in the country, but is still subject to its laws.
Huobi notes that it is not registered as a virtual currency exchange business under the “funds settlement law of Japan.” Therefore, it does not conduct any virtual currency exchange business in the country. The company finally points out that it respects the Japanese law and has not solicited any persons who reside in Japan (individuals or corporations).
“It’s really problematic that the FSA doesn’t give us the heads-up before announcing business improvement orders for instance that lead to a temporary halt of business [of the company which was issued the business improvement order]. It messes up everything, suddenly,” said Mas Hihara, a Japanese Blockchain technologist.