Bitget to exit Japan by Nov. 1 after operating unlicensed despite repeated FSA warnings

Bitget will stop serving Japanese residents, freezing accounts on Nov. 1 and force-closing any remaining open positions by Dec. 31, the exchange confirmed, after operating without registration in Japan despite three separate warnings from the country’s Financial Services Agency since 2023.

The decision represents one of the exchange’s most significant market exits to date and underscores the increasing influence of national regulators over global cryptocurrency platforms.

Japan’s regulatory crackdown leads to Bitget Japan exit

The Bitget Japan exit comes after multiple warnings from Japanese financial authorities concerning the company’s operations without the required regulatory approval.

Japan’s Financial Services Agency (FSA) first issued a public warning to Bitget in March 2023, stating that the exchange was providing cryptocurrency trading services to Japanese residents without obtaining mandatory registration. The regulator repeated the warning in November 2024, maintaining that the exchange had continued offering services despite remaining unlicensed.

Regulatory scrutiny intensified further in June 2025, when the Kanto Local Finance Bureau, operating under Japan’s Ministry of Finance, issued another warning against BTG Technology Holdings Limited, identifying the company as operating under the Bitget brand. Authorities alleged that the firm had been soliciting online over-the-counter derivatives transactions without the required authorization.

Rather than seeking registration with Japanese regulators, Bitget has now opted to leave the market altogether.

As part of the withdrawal process, users who believe they have been incorrectly classified as Japanese residents must complete Level 2 Know Your Customer (KYC) verification, including proof of address, before Nov. 1. Accounts that fail to complete the verification process will continue to be treated as Japanese resident accounts and will become subject to the platform’s restrictions.

The exchange said affected users will receive email notifications detailing available options for withdrawing assets and completing the account closure process.

Compliance strategy reflects broader global regulatory shift

The Bitget Japan exit is not an isolated event but part of a broader strategy the exchange has adopted as regulators around the world tighten oversight of cryptocurrency businesses.

Instead of operating under a single global model, Bitget has increasingly tailored its services based on local licensing requirements.

In July, the company publicly stated that it is not licensed, registered, or supervised by the Monetary Authority of Singapore (MAS). Bitget reiterated that Singapore remains a prohibited jurisdiction under its Terms of Use and confirmed that it neither targets nor provides services to residents there.

At the same time, the exchange has continued pursuing approvals in jurisdictions where it intends to establish long-term operations.

Last month, Bitget successfully registered on New Zealand’s Financial Service Providers Register (FSPR) across multiple financial service categories and joined the country’s Insurance and Financial Services Ombudsman dispute resolution scheme.

However, New Zealand authorities have clarified that registration on the FSPR does not constitute government endorsement or active regulatory supervision. Depending on the services provided, additional authorization may still be required from either the Financial Markets Authority (FMA) or the Reserve Bank of New Zealand.

Speaking previously about the company’s international strategy, Bitget CEO Gracy Chen emphasized the importance of regulatory compliance.

“We will continue pursuing local regulatory requirements as we expand globally,” Chen said in earlier company statements.

Her comments reflect an industry-wide trend as cryptocurrency exchanges increasingly prioritize licensing to maintain access to key financial markets.

Expansion plans continue beyond restricted markets

Despite the Bitget Japan exit, the exchange continues to pursue growth opportunities in jurisdictions where it believes regulatory pathways are achievable.

Earlier this year, the company revealed plans to establish a separate legal entity before launching services in the United States. According to Chen, Bitget intends to obtain money-transmitter licenses, broker-dealer approvals, and derivatives-related authorizations before entering the U.S. market, regardless of whether lawmakers eventually pass the proposed CLARITY Act.

The exchange has also expanded beyond digital assets into tokenized traditional investments.

Chen previously disclosed that tokenized real-world assets represented between 20% and 30% of Bitget’s spot trading volume during the previous quarter. She added that more than half of Bitget’s customers currently hold both cryptocurrencies and traditional equities, highlighting growing demand for hybrid investment products.

Industry analysts have noted that crypto exchanges are increasingly adopting jurisdiction-specific compliance models instead of offering identical services worldwide. This approach enables firms to continue expanding internationally while minimizing regulatory conflicts in markets where licensing requirements are particularly stringent.

The Bitget Japan exit therefore illustrates more than a single market withdrawal—it reflects the changing reality facing global cryptocurrency exchanges as governments demand stronger compliance, consumer protection, and licensing standards. As regulators continue tightening oversight across major economies, exchanges are being forced to make difficult strategic decisions between pursuing costly local authorization or withdrawing from markets altogether.

For Bitget, Japan has become the latest example of that balancing act. While the company continues investing in expansion across approved jurisdictions, its departure from one of Asia’s most tightly regulated crypto markets demonstrates that regulatory compliance has become a defining factor in determining where global exchanges can operate successfully.