Breaking News out of Japan states that Huobi Pro, one of the biggest cryptocurrency exchanges in the world is set to withdraw from Japan and will cease to provide exchange services to customers there.
The Financial Services Agency in Japan have of course outlined very strict regulations and guidelines for cryptocurrency exchanges that wish to operate there. It seems at this point Huobi Pro have conceded to the fact that they are either unwilling or unable to match these guidelines. As it stands, Huobi Pro is not registered with the authorities in Japan and as a result, the exchange had feared it would be forced to close down operations in Japan regardless. We don’t have any official word from Huobi Pro as yet, but this news is breaking the headlines, so we can be pretty confident that this is accurate.
According to CCN:
“Citing its lack of registration with the country’s financial regulator, cryptocurrency exchange Huobi Pro is suspending trading services to users in Japan from July 2. The exchange operator announced its upcoming withdrawal from the Japanese market in an email sent to users on Wednesday, local news resource Coinpost has revealed. The Seychelles-based exchange further detailed it would remove its Japan-centric pages from its homepage on July 2nd, the same day it suspends services to residents of Japan.”
“Huobi Pro’s exit follows a similar move taken by Hong Kong-based exchange HitBTC, which revealed it would ‘temporarily’ suspend services to Japanese residents as a direct consequence of the mandated requirement to comply with the FSA’s regulations, earlier this month. HitBTC added it had engaged in consultation with the regulator and outlined its intention to launch a compliant and regulated subsidiary exchange platform in the coming months.”
You can see the full report for yourself, here-
What does this mean?
Well, news such as this tends to shake up the markets. Indeed, it does mean that Huobi Pro’s trading volume will also decrease, some reports actually indicate that as much as 13% of Huobi Pro’s traffic comes via Japan. As the markets are already swinging downwards, we don’t expect this news to have too much of an impact on cryptocurrency values, however, this could very well encourage more damage to the markets.
It also means that a new space opens up in Japan. With one very big rival removed, way is made for other, registered exchanges to pick up some new customers, from a bank of those that have inevitably been left behind by this move.
Overall, it is a shame that Huobi Pro haven’t actually managed to gain registration in Japan, as it stands, we aren’t sure why this is but at the very least, it does seem they know what they are doing wi9th this move and that therefore, the international Huobi Pro customer base, shouldn’t be too badly affected by this.
For now, we await further official word from the Huobi Pro team.