BitMEX Restricts Japan. Is Korea Next?

Japan has amended the way cryptocurrencies are regulated within the country, promoting BitMex to begin restricting access to local residents, the exchange announced last week.

to annouce BitMex closed Japan service

to annouce BitMex closed Japan service

The first of May was the first of a new normal for crypto traders in Japan. In the wake of new regulations authorized by the Japanese government, BitMEX closed nearly all services to the nation’s residents. The international derivatives exchange announced that existing contracts would be honored, but users would not be allowed to open new positions. Japan codified the regulations via amendments to the Japan Financial Instruments and Exchange Act and Japan Payment Services Act.

BitMEX released a statement on its blog on April 28, 2020, expressing support for all regulations that “help establish standards for cryptocurrency products that will underpin the advancement of this rapidly growing asset class.” In this particular case, it appears said support fell short of compliance.

It will be interesting to see what occurs next in South Korea, which has in the past demonstrated a tendency to implement regulations similar to its island neighbor. Further instances of global exchanges disengaging from Eastern markets would highlight the need for a fresh blueprint to break into—and remain welcome within—these territories. Should larger exchanges put on their dance shoes and establish a physical presence on the ground, or would they be better served partnering with local exchanges that have already learned the regulation two-step? One thing is certain: economies like Japan and South Korea won’t wander unattended at the punch bowl for very long.