Leading cryptocurrency exchange HitBTC has announced that it is temporarily suspending its services to residents of Japan.

The company clarified:

“In accordance with the Japan Payment Services Act, HitBTC has temporarily suspended providing virtual (crypto) currency exchange services to residents of Japan. In case our technology detects that you use our Services from an IP address registered in Japan, or any other services registered in Japan, you would be asked to confirm that you are not a resident of Japan by providing information on you residency within KYC procedure.”

HitBTC said that the suspension has been implemented to comply with existing regulations in Japan and announced that it is preparing to launch a regulated subsidiary in the country. It added:

“Previously this year, HitBTC team started working with a worldwide-recognized Japanese law firm, the cooperation aimed to get HitBTC through the local subsidiary setup and licensing procedure to resume its services for Japan residents. The company is actively hiring for the local office and exploring M&A opportunities to expedite the launch of the Japanese operations in Q3 2018”.