Bitget has announced plans to withdraw from Japan, with the cryptocurrency exchange set to end services for Japanese users and close any remaining positions by the end of the year.

The company said it will stop offering crypto trading access to residents of Japan as it works to ensure compliance with the nation’s regulatory requirements.

In a statement released Monday, Bitget confirmed that it stopped accepting new registrations from Japanese customers on Sunday. The exchange is ranked fifth on CoinGecko and has processed around $714.7 million in trading volume over the past 24 hours.

The decision comes as Japan prepares to implement stricter crypto regulations after lawmakers approved legislation in July that classifies digital assets as financial instruments. The new framework, expected to take effect next year, introduces significant penalties for unregistered operations, including fines of approximately $62,800 and potential prison terms of up to 10 years.

Bitget said customers who believe they were incorrectly identified as Japan-based users must complete Level-2 verification by Nov. 1. This process requires additional identity checks, including address verification. Accounts that do not complete the review will continue to be considered Japanese accounts.

Starting Nov. 1, affected accounts will enter close-only mode. Users will be unable to open new positions, add to existing positions, or use features such as spot trading, futures trading, copy trading, trading bots, and earning services. Deposits, within certain limits, and withdrawals will remain accessible.

The exchange plans to forcibly close all outstanding positions on Dec. 31 and discontinue card services. Users will still be able to withdraw their funds after the deadline.

Bitget, a Seychelles-based company, did not provide details on whether a specific regulatory change or enforcement action prompted its exit. The exchange also did not immediately respond to requests for additional clarification.

Crypto exchanges operating in Japan are required to register with the Financial Services Agency (FSA) and follow local compliance rules. Japanese regulators have maintained a strict approach toward foreign platforms offering services without proper approval.

In 2023, Bitget, along with Bybit, BitForex, and MEXC, received notices from Japanese regulators warning that they were allegedly providing crypto services in the country without the necessary registration, potentially violating Japan’s fund settlement laws.