Leading crypto derivatives exchange, BitMEX has announced that it will soon restrict all Japan-based users from its platform.

According to the April 28 announcement, BitMEX will close its services to Japan residents starting May 1, amid new Japanese regulations. The announcement also noted that the restrictions for new registrants will take effect from 23:00 JST, April 30.

What this means is that, Japan residents who are registering on the BitMEX platform for the first time will be denied the opportunity to trade. Also, any existing registered Japanese trader will not be able to place orders that would open a new position or increase an existing open position. The announcement however stated that open positions will not be affected, but will continue in accordance with the terms of the relevant contract.

According to BitMEX, these restrictions are to comply with the newly passed amendments to the Japan Financial Instruments and Exchange Act and Japan Payment Services Act, which will go into effect on May 1, 2020. BitMEX stated in the announcement that:

“We support the efforts of regulators to help establish standards for cryptocurrency products that will underpin the advancement of the rapidly growing asset class. 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 Japan Financial Instruments and Exchange Act and Payment Services Act were 2 of the pieces of legislation passedlast year by the Japan House of Representatives. The amendments require crypto startups to register with the regulatory agencies and comply with relevant provisions about the management of user transaction records, information disclosure, among others. The amendments also seek to lower the threshold for transactions that require confirmation at the time of transaction