Japan residents face restrictions to use OKX crypto exchange

Recent changes have made it restrictive for Japanese citizens who are using OKX, an international cryptocurrency exchange. This action is a result of Japan’s efforts to protect investors, maintain the integrity of the financial system, and stop illegal activity related to cryptocurrencies.

Users of OKX who provided feedback claim the issue began from June 26, 2023

Source: Pexel.com

The entire cryptocurrency market has experienced rapid development and widespread acceptance in recent years, drawing an impressive amount of traders from all over the world. Japan has been keeping a close eye on this changing environment because of its technology developments and progressive legislative attitude to cryptocurrencies.

OKX faces operating difficulties in Japan

NFTStudio24 visited the OKX website, and it stated: “OKX Exchange products are not accessible in your area.”

OKX claims that the service is “not accessible due to Japanese laws and regulations.” “By presenting a legitimate government-issued ID, you could continue to use OKX’s exchange services if you don’t reside in Japan.”

OKX, the second largest offshore crypto exchange, plans to suspend services to residents of Japan, according to Coinpost. The exchange's app says "Due to local laws in Japan, you cannot use OKX Exchange products." The move may be due to regulatory pressure from Japan's Financial…

— Wu Blockchain (@WuBlockchain) June 27, 2023

On Twitter, some customers claimed that once they had finished their KYC, they were able to withdraw funds from OKX, whereas other individuals stated that their withdrawals were being rejected since they were still finishing their KYC. 

Know Your Customer (KYC) can also refer to Know Your Client. When establishing an account and on a regular basis after that, the client’s identity must be identified and verified through a process called KYC, or KYC check. In a nutshell, banks need to confirm that their customers are actually who they say they are.

Furthermore, certain buyers of the native token “SUI ” of the next layer 1 blockchain Sui, which was sold at OKX in April, had their purchases locked for a set period of time. They were unable to cash out the entire amount.

It needs to be noted that OKX is an exchange that lacks a Japanese license to conduct cryptocurrency asset exchange activity.

• About author
• Disclaimer

Nimra

Nimra Javed is a Content Writer and Content Strategist at NFTStudio24. Having a degree in English Literature and Sociology (Minor), she uses her experience as an independent Freelancer and creative writing skills to craft well-researched articles and content.

The content provided here is for general informational purposes only. It should not be considered as professional advice. Any actions taken based on this information are at your own risk. We do not assume any responsibility or liability for the accuracy, completeness, or suitability of the information. Always consult with a qualified professional for specific advice related to your circumstances.