The third largest exchange in the world announced they are ceasing trading services to users in Japan starting next month.
A news report from crypto-focused website Coinpost reveals that the exchange announced the move in an email sent to investors in Japan on Wednesday. The email says Huobi Pro will remove the Japanese option from its website and will suspend trading services starting July 2.
Another crypto news website, Coindesk, has confirmed the news with the firm. Huobi is yet to provide further details such as the plan for users’ asset withdrawals.
Huobi made the decision to leave the Japanese market because it is not registered with the Financial Services Agency (FSA), as required under a money transaction law enacted in 2016.
Earlier this year, the firm announced plans to partner with SBI Virtual Currency to launch a regulated platform in Japan. The plan was later scrapped by SBI Virtual Currency back in March.
Data from web traffic tracking site Alexa revealed that 13.3 percent of visitors on Huobi Pro are from Japan. Huobi has not yet confirmed if it will consider filing a registration application with the FSA.
In March of this year, Binance, currently the second largest crypto exchange going by trading volume, received a warning from the FSA saying that, as a foreign entity, the firm was offering trading services to Japanese residents without a proper license. Binance said at the time its legal team was in talks with the FSA to resolve the issue.