Gate.io has users all over the world, and more than 10 million people have opened accounts and traded. Among them, there are a certain number of Japanese users, so Japanese are one of the big customers. However, the Japanese Financial Services Agency does not recognize Gate.io. Is there any problem for Japanese people to use Gate.io?
- Banned for Japanese? be illegal?
- no warning
- Reasons for reluctance to obtain approval from the Financial Services Agency
- Cryptocurrency exchange withdrew from Japan
- About the features and main functions of 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.
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 Binance has been warned and withdrawn completely from the Japanese market before, but Gate.io is not in that situation yet.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
Gate.io, Bybit, Coinbase, and Binance are not licensed by the Japanese Financial Services Agency. Of course, some of these exchanges have withdrawn from the Japanese market. So why don’t exchanges want to be licensed by the Japanese Financial Services Agency? There are some big reasons for that:
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, in fact, it is a fact that the world’s famous major virtual currency exchanges are withdrawing from the Japanese market. The following exchanges have actually withdrawn: Gate.io is fine so far, but I’m not sure what the future holds.
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, 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 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 top exchanges such as Binance, Bybit, and Kucoin in the world’s ranking of crypto asset exchanges. The operating company is also located in the Cayman Islands, allowing for high leverage trading. The required fees are around 0.15~0.2% for Maker/Taker, so it’s not that expensive.
Deposits and withdrawals
Deposits and withdrawals support P2P, virtual currency, etc. We recommend that you purchase virtual currency and use the QR code and scan to easily transfer funds using blockchain. It is convenient because you can send money using Ethereum and Bitcoin. Wallet management is also convenient and you can transfer funds at a glance. It is possible to open multiple new accounts.
Full of security features
The security measures and functions are quite complete, it supports two-step authentication, and password management is safe. You can also manage it using a web browser or mobile app. The service is solid and support responds quickly. Since it has an identity verification level function, it can also prevent strange users from entering. Multisig and cold wallets are used.
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.