As a result of regulations imposed by the Japanese Financial Services Agency (FSA), Huobi Pro has been forced to suspend trading in the country from next month.
In an email sent to users, the Seychelles-based exchange explained it will need to withdraw from Japanese markets as it is not registered with the FSA. It went on to mention that all Japanese-related pages will be removed from its website and all services for the country will stop on July 2nd this year.
Huobi Pro is currently the third-largest exchange globally and was originally formed in China before moving its operations to the Seychelles. Earlier this year a virtual currency division of Japanese bank SBI Holdings announced plans to partner with Huobi but subsequently withdrew the plans to pursue its own project.
It is estimated that 13.3 percent of Huobi Pro’s traffic originates in Japan, suggesting that the move could severely affect their trading volume. Whether or not they plan to file for registration with the FSA is unclear at this time.
Huobi Pro has been the only exchange to suffer from the new regulations. Hong Kong-based exchange HitBTC has also recently suspended its Japanese services for similar reasons and it was reported earlier this year that exchange giant Binance received a warning from the FSA about trading in Japan without a license.