Why Almost Every Perps Platform Blocks Japan Users: How They Still Get Traded – VPN, DEX, No-KYC Exposed
The Japanese Regulatory Hurdle for Perpetual Trading
Japan's strict cryptocurrency regulations, enforced by the Financial Services Agency (FSA), have led most centralized perpetual trading platforms to geo-block Japanese IP addresses. Platforms like Binance and Bybit cite compliance with anti-money laundering (AML) rules and unlicensed operations as reasons for restrictions. This stems from Japan's Payment Services Act, which requires platforms to register locally, a process few international exchanges pursue due to high compliance costs.
Despite these barriers, demand for perpetual trading remains high among Japanese traders seeking leverage on assets like BTC and ETH. Volumes in derivatives trading in Japan grew 25% year-over-year in 2024, per CoinGecko data, pushing users toward workarounds.
Bypassing Blocks: VPNs, Centralized Exchanges, and the Shift to DEXs
Traders often use VPNs to mask their location and access blocked centralized exchanges (CEXs). However, VPNs carry risks like account freezes upon detection and potential legal issues under Japan's laws.
A safer, growing alternative is decentralized exchanges (DEXs) with no-KYC requirements. These on-chain platforms eliminate intermediaries, allowing pseudonymous trading without geographic restrictions. Protocols like GMX and Gains Network paved the way, but Hyperliquid has emerged as a leader in 2024-2025.
Hyperliquid: The No-KYC Perps Powerhouse Accessible to All
Hyperliquid, built on its own high-performance L1 blockchain, dominates perpetual trading with over $50 billion in cumulative volume as of early 2025, according to DefiLlama. It offers up to 50x leverage on 130+ markets, sub-second execution, and zero gas fees for trades—features that outpace many CEXs.
Key advantages include:
- Fully on-chain order book: Transparent matching without off-chain risks.
- No KYC: Connect any wallet and trade instantly, ideal for restricted regions like Japan.
- Recent upgrades: Hyperliquid's HYPE token airdrop in late 2024 boosted adoption, with TVL surging past $2 billion (Hyperliquid docs).
For Japanese users, Hyperliquid's permissionless access via DEX bypasses CEX blocks entirely. Traders report seamless entry using MetaMask or hardware wallets, with VPNs rarely needed.
Seamless Integration: Hyperliquid and OneKey Wallet
OneKey, a secure hardware wallet, integrates effortlessly with Hyperliquid, enabling safe perpetual trading on DEXs. Users connect their OneKey device via WalletConnect to the Hyperliquid app at app.hyperliquid.xyz.
Step-by-Step Setup
- Download and set up OneKey on your device.
- Fund your OneKey with USDC (Hyperliquid's primary collateral).
- Connect OneKey to Hyperliquid: Select "Connect Wallet" > WalletConnect > Scan QR with OneKey app.
- Trade perps directly—positions settle on-chain.
When closing positions, withdraw to OneKey for cold storage security. OneKey's air-gapped signing and EAL6+ secure element protect funds from DEX exploits, a critical feature amid rising DeFi hacks (over $1.7B lost in 2024 per Chainalysis).
This integration combines Hyperliquid's speed with OneKey's enterprise-grade security, perfect for high-volume Japanese traders avoiding CEX risks.
Risks, Compliance, and Secure Trading Tips
While DEXs like Hyperliquid offer freedom, users must navigate:
- Smart contract risks: Audit reports confirm Hyperliquid's robustness (Hyperliquid security).
- Tax implications: Japan requires reporting crypto gains; track trades via tools like Koinly.
- Best practice: Always withdraw to OneKey post-trading to minimize exposure.
Why Hyperliquid + OneKey is the Future for Global Perps Traders
As regulations tighten, no-KYC DEXs like Hyperliquid are reshaping perpetual trading, especially for users in Japan. Pairing it with OneKey ensures your funds stay secure offline. For seamless, compliant access, start with OneKey today—trade boldly, store safely.
