Bitget Takes Action Following 10-Year Prison Threat: Fully Withdrawing from This Country

Crypto exchange Bitget has announced that it will fully withdraw from the Japanese market and close all open positions by the end of the year as part of its efforts to comply with local regulations.

Bitget, one of the platforms with the world’s highest trading volume, has decided to terminate its operations in Japan. According to an official statement by the company, new registrations for users residing in Japan were halted as of last Sunday. This move comes after the country significantly increased its oversight and legal sanctions on crypto assets.

The Japanese parliament approved a law last July reclassifying cryptocurrencies as financial instruments. These new rules, expected to take effect next year, foresee severe sanctions such as fines of approximately $62,800 and up to 10 years in prison for exchanges operating without a license. Bitget has set a strategic withdrawal schedule to avoid getting caught in this strict legal framework and to manage the compliance process.

Strict Oversight in Japan and Bitget’s Exit Timeline

Existing users must complete Level 2 identity verification, including proof of address, by November 1st. From this date onwards, the exchange will switch Japanese users’ accounts to closing-only mode. During this process, users will not be able to open new positions in spot or futures trading, nor will they be able to use trading bots or copy trading services. However, asset withdrawals and deposits within limits will continue for a while longer.

On December 31, all open positions on the platform will be forcibly closed by the exchange, and card services will be fully suspended. The Japan Financial Services Agency (FSA) maintains a very strict stance against foreign exchanges providing unauthorized services in the country. In 2023, major exchanges such as Bybit and MEXC, along with Bitget, received warning letters on the grounds that they were operating without registration. The company’s decision demonstrates that only licensed players can now participate in Japan’s vibrant financial market.