Gate.io: Are Japanese people prohibited from using cryptocurrency services? A thorough explanation of the latest information on the relationship with the Financial Services Agency and the safety of cryptocurrency exchanges

Gate.io

The overseas virtual currency exchange (cryptocurrency) Gate.io has users in Japan and around the world, with over 10 million people opening accounts and trading. Among them, there are a certain number of Japanese users, so Japanese people are also one of the major customers. However, the Japanese Financial Services Agency does not approve of Gate.io. So is it okay for Japanese people to use Gate.io?

Banned for Japanese? be illegal?

As of 2023, Gate.io is not licensed by the Japanese Financial Services Agency. In other words, it is not registered with the Financial Services Agency. However, even Japanese people can trade without problems. In other words, there is no illegality in the use by Japanese people, but on the other hand, it means that they use it at their own risk. Even in Japanese law, there is no law prohibiting Japanese from using overseas virtual currency exchanges. However, I do not know what will happen in the future.

no warning

Gate.io supports the Japanese version on its official website, but since it does not actively solicit Japanese people, the Japanese Financial Services Agency is also relatively quiet. Binance has been warned and withdrawn completely from the Japanese market before, but Gate.io is not in that situation yet. Since it is a form of registration at your own risk, there is no particular reason for the Japanese Financial Services Agency to issue a warning. At least so far there are no problems. The Financial Services Agency prohibits conducting sales activities for Japanese without permission. If you cross this line, you will get a “warning”.

Reasons for reluctance to obtain approval from the Financial Services Agency

Not only Gate.io, but also Bybit, Coinbase, and Binance are not licensed by the Japanese Financial Services Agency. Of course, some of these exchanges have already withdrawn from the Japanese market. So why do exchanges not want to be licensed by the Japanese Financial Services Agency? There are several major reasons for this. We will explain the details of some services that are not subject to regulation by the authorities and will be terminated. We will explain the benefits of exchanges that offer advantageous exchanges when implementing this.

Leverage regulation

One is leverage regulation. Gate.io has a maximum leverage of over 100 times, making it a very attractive exchange. High leverage has the advantage that you can start with a small amount and suddenly earn a large amount of money. However, in order to be approved by the Japanese Financial Services Agency, the leverage must be lowered to 25 times. This is a big risk and you run the risk of losing your users. That is why Gate.io dares not be licensed by the Japanese Financial Services Agency.

Zero cut system

Virtual currency exchanges around the world have adopted a zero cut system. The zero cut system may cause the account balance to become negative due to large fluctuations in the market, but the virtual currency exchange compensates for this negative amount. This is a big advantage for the trader side and there is no risk of incurring debt. If you do not lose this, you will not be able to receive approval from the Japanese Financial Services Agency. Even as an exchange, we dare not get accredited because we risk losing users.

Cryptocurrency exchange withdrew from Japan

However, the fact is that the world’s famous major cryptocurrency exchanges have withdrawn from the Japanese market. The following exchanges have actually withdrawn. Gate.io is fine for now, but it’s hard to say what will happen in the future. Even if you compare the latest news and breaking news on the web, the industry is increasingly shifting services from Japan. Since many of the operations are done by global businesses, the companies are rapidly taking measures according to their schedules. Check the official market trends and distribution in real time.

Binance

Binance has received a warning for soliciting without approval from the Japanese Financial Services Agency. As a result, the Japanese version page was deleted from the official page in 2022, and Japanese users can no longer register. However, since then, Binance has entered the Japanese market again by acquiring 100% of the shares of the domestic exchange Sakura Exchange and making it a wholly owned subsidiary. We are aiming to enter the market by changing the form and complying with the law.

Coinbase

Coinbase, a major American virtual currency exchange, has decided to withdraw from the Japanese market in 2023 after receiving a warning from the Japan Financial Services Agency. Currently, Japanese users can no longer deposit or withdraw, and can no longer register, making it unusable. I think the withdrawal of the world’s largest virtual currency exchange is a pain for Japanese people.

BitMEX

BitMEX also decided to withdraw from the Japanese market in 2020. This is also a withdrawal after considering the revision of the Financial Instruments and Exchange Act of the Japanese Financial Services Agency and the Act on Funds Settlement. New registration, access, and transactions by Japanese residents are prohibited, and Japanese users cannot use BitMEX.

About the features and main functions of Gate.io

Gate.io is as famous as Binance, Bybit, Kucoin, and other top cryptocurrency exchanges in the world rankings. The operating company is also located in the Cayman Islands, and high leverage trading is possible. The fees required are about 0.15 to 0.2% for Maker and Taker, so they are not that high. Please check the media for compliance and terms of use before trading. It has been announced that services for Japan will be discontinued on July 22, 2024.

Deposits and withdrawals

Deposits and withdrawals are supported by P2P and virtual currencies. We recommend purchasing virtual currencies using a QR code, which allows you to easily transfer funds using blockchain by scanning. It is convenient because you can transfer funds in Ethereum and Bitcoin. Wallet management is also convenient, and you can transfer funds in a list. You can open multiple new accounts. You can also check some matters officially for free. Start with a popular exchange. There is also a separate press release, so check it out. It is offered globally regardless of region.

Full of security features

The security measures and functions are quite extensive, it supports two-step authentication, and password management is also safe. It can also be managed via a web browser or mobile app. The service is solid and support is available immediately. It has a level of identity verification, which prevents unauthorized users from entering. It uses multi-sig and cold wallets. Staking is also possible with listed Ripple and Bitcoin.

Rich in content

Gate.io has a lot of content, and if you hold GT tokens, you can get airdrops of newly listed coins, and there are many bonuses and campaigns. We have the widest selection of stocks in the world, and you can buy and sell major altcoins such as BTC, ETH, and USDT. It is a more complete brand than coincheck. It also has its own trading platform, and you can earn points that can be used within the exchange. If your money becomes negative due to a loss, a zero cut will be taken, so there is no risk of debt.

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