Seychelles-based cryptocurrency derivatives platform BitMEX is set to restrict access to its popular exchange for Japan residents.
Effective Friday, May 1st, Japanese residents will be restricted from opening accounts while for those that hold accounts, they will be restricted from opening new positions or adding onto existing ones. The announcement, which was published on Tuesday reads:
“With effect from 23:00:00 JST 30 April 2020 (for users registering for the first time), and 00:00:00 JST 1 May 2020 (for existing registered users), we are restricting access to users who are Japan residents. This will mean a user who is a Japan resident registering on the BitMEX platform for the first time will be unable to trade and any existing registered customers who are Japan residents will not be able to place orders that would open a new position or increase an existing open position. Open positions will otherwise not be affected and will continue in accordance with the terms of the relevant contract.”
BitMEX, one of the leading crypto margin trading exchanges says the measures will a response towards the newly introduced cryptocurrency laws as provided for in the amended Japan Financial Instruments and Exchange Act and Japan Payment Services Act.
These amendments resulted from a Cabinet Order made earlier this month requiring relevant lawmakers to come up with regulations on crypto derivative and fund procurement transactions. These laws will go into effect on May 1st, which explains the chosen BitMEX restriction date.
BitMEX, in its announcement, maintained that it supports regulatory provisions to help keep the cryptocurrency space secure and trustworthy. “We will continue to work with the Japanese regulatory authorities to support their aims for the Japan market and will keep our Japan users updated.
The news comes amidst an ongoing scramble for BitMEX to retain market share as more competitors seek to take a bite of its turf. Leading cryptocurrency exchange Binance has seen its derivatives product increase market share proving a formidable opponent in the fight to dominate the cryptocurrency space.
Crypto-Economy reported last week a new ETH/USD futures contract soon to launch on BitMEX. Unlike its current Ether futures, this latest product will be a “Quanto” futures product having Bitcoin as the multiplier.
This, according to BitMEX means that traders will be able to speculate on the price of Ethereum in dollar terms without having to hold Ether or the US Dollar. The product launches on May 5th at 04:00 UTC.