There have been a lot of ups and downs in the Japanese digital currency market recently. Hitbtc is regarded as the eighth largest crypto exchange in the world. This exchange just suspended its service in Japan.
This exchange was established way back in 2013. It provides access to the crypto assets under the Hitbtc trademark.
It offers a wide range of digital currencies that include Monero, Litecoin, Ethereum, and Bitcoin. Hitbtc has got more than 300 digital currencies, and this is why the users have got plenty of choices. The 24-hour trading volume of this exchange is also quite impressive.
The exchange is taking all the adequate measures so that the residents of Japan will not be able to access its services at all at this point. The reason is that the licensing process is not completed.
Hitbtc makes use of advanced technology. This is why it can easily detect the IP addresses that are based in Japan. The exchange stated that if the respective technology detects that the IP is based in Japan, then, in this case, the user will have to provide the residency details to confirm that he is not a Japanese resident.
However, the exchange clearly stated that the residential restrictions would apply to the residents of Japan only. The Japanese Payment Service Act became effective in April 2017. It legalized the digital currency as a mode of payment.
However, there is an important clause in the Act that cannot be ignored. The clause states that any digital currency exchange that operates in the country has to register with the financial authority. At the moment about 16 exchanges have been granted the authority to operate in the country.
The financial authority strongly condemns those exchanges that have been operating without a license in Japan. It seems that Hitbtc is quite focused on its goals and has not decided to terminate the operation in Japan completely.
This exchange has been working with a law firm. The basic objective is to let the law firm manage the licensing process for the exchange. This means that once the licensing process is done, then there are chances that Hitbtc might start operating in Japan again.
What is worth appreciating here is that Hitbtc intends to work the legal way. It is a reputed exchange, so Hitbtc does not want to take any risk at all. The actions of this exchange should be appreciated and let us hope that the Japanese residents get access to this exchange very soon.