BitMEX, a popular crypto derivatives exchange, has decided to restrict its trading platform’s access to all Japanese residents.
The exchange will block the registration of new users from the late hours of April 30, while all existing users will be blacklisted from May 1.
“This will mean a user who is a Japan resident registering on the BitMEX platform for the first time will be unable to trade and any existing registered customers who are Japan residents will not be able to place orders that would open a new position or increase an existing open position,” BitMEX stated.
However, the exchange will not suspend the already open positions and they will liquidate according to the relevant contract.
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Regulating the derivatives market
The official announcement detailed that the decision was taken as Japan is going to enforce new cryptocurrency laws from May 1, tightening the regulator’s grip on the market.
The new rules were brought specifically for the crypto derivatives market, which is still largely unregulated in Japan despite heavy volumes.
“We support the efforts of regulators to help establish standards for cryptocurrency products that will underpin the advancement of this rapidly growing asset class,” BitMEX added. “ 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.”
Notably, BitMEX’s services are already restricted in the United States, China, Hong Kong, Québec province in Canada, Seychelles, Bermuda, Cuba, Crimea and Sevastopol, Iran, Syria, North Korea, and Sudan, along with the countries in the embargo list of the US.
Meanwhile, BitMEX recently introduced a new Ethereum futures contract, settled in Bitcoin.