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Breaking News / Cryptocoins / Exchanges

HitBTC Plagued By Japanese Crypto-Regulations And Forced To Cease Trade In Japan

HitBTC is an international cryptocurrency exchange which currently offers customers a wealth of trading options, pairs and investment opportunities. At the time of writing, HitBTC has a trading volume of $268,047,187.00, therefore, it’s not the biggest exchange in the world yet you can argue that HitBTC has a substantial presence within the market. HitBTC currently stands in 8th place by trading volume.

Some of the currencies on offer within HitBTC include Bitcoin, Ethereum, Ripple, Monero, Litecoin and TRON, among many others, in fact, HitBTC gives customers access to over 600 currencies and trading pairs.

According to reports out today, HitBTC have now been forced to cease trading within Japan and thus, are going to be closing their doors to Japanese and Japan based traders and investors. The motives behind this are allegedly related to the fact HitBTC would not be willing to adjust their operations to meet the strict standards outlined by Japanese authorities, requirements that enforce exchanges to operate under a specific guise to ensure the security and integrity of its customers.

According to Cryptovest:

“HitBTC was seen as an exchange with a dubious reputation, especially after a hack in 2015. The exchange has also received many complaints for loss of funds, although back in 2015, the exchange stated that user funds were safe. Since then, there have been regular complaints of lost coins and withdrawal problems.”

See the full report by Cryptovest for yourself, here-

This is significant news indeed. With over 3 Million active cryptocurrency traders in Japan, HitBTC are no doubt going to take a hit from this (pardon the pun). By closing here, HitBTC are going to reduce their customer base by a massive amount. It does however seem that HitBTC had very little choice in the matter. In order to continue trading in Japan, HitBTC would be forced to de-list currencies such as Monero, which pay a huge focus on privacy and anonymity. Such currencies make up a majority of HitBTC’s trading volume and therefore, removing these currencies would mean that HitBTC could potentially lose a large number of customers worldwide, instead of just in one locality.

It seems like a difficult trade off, but the decision has been made and thus, HitBTC will no longer operate within Japan. As this news continues to leak, we expect the markets to adjust accordingly, meaning this afternoon, we could very well see some quite low prices within the markets. Let’s wait and see what happens here.

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Robert is a keen investor with a particular interest in cryptocurrencies. He has been involved in the industry for many years, and because of this, has gathered a lot of knowledge surrounding this area. He studied English at university level and has a passion for writing. He loves being able to combine his two mains interests on a daily basis.