As Bitmex Japan closes its operations, the ever-tightening rules in the country are sparking a worrying trend. Japan has a liberal crypto scene where innovation and new players are promoted. Lately, the country is witnessing an increased strictness in the crypto-related financial regulations.
Bitmex Japan closes in a bid to avoid the mounting regulations. The government red tape has claimed yet another crypto business, and the country’s crypto community is raising the alarm over this disturbing trend. The news of this foremost crypto derivatives exchange closing down its Japanese operations has perturbed the nation’s crypto fans.
Bitmex Japan closes crypto derivatives to avoid red tape
The crypto market is already facing dire times due to the COVID-19 market rout. All the cryptocurrencies have lost a significant part of their worth and are trading near lifetime lows. In these times, authorities must encourage the trading activity so as to stir more liquidity into the system.
Amid these uncertain economic ties, Bitmex Japan closes its doors to Japanese traders. Interestingly, the biggest crypto derivatives exchange in the world is executing the country’s newly formed regulations that restrict such derivative trading activities.
As per the official announcement made by the exchange on April 28, it is closing crypto derivatives services for the Japanese with effect from May 1. The newly formed regulations were announced after the Japanese Cabinet passed the order to implement new rules about the crypto derivatives trading.
Japenese crypto derivatives scene getting murkier
Changes have been introduced in the Japan Financial Instruments and Exchange Act. Additionally, the Japan Payment Services Act has also been amended, which reflect the new crypto guidelines. Both new and current Japanese traders will be affected adversely by these newly amended regulations.
As crypto exchange Bitmex Japan closes from May 1, traders are left in the lurch. New positions won’t be opened, and presently open positions will be carried forward as per their relevant contact details. There aren’t many good quality alternatives where they can trade crypto derivatives.