The concept of Airbnb is great – imagine being able to travel to any country in the world and find potentially cheaper and better accommodations than hotels or hostels. Given the prices of hotels in Japan, Airbnb’s launch in the country was very much welcomed by tourists, but it seems that a new law has forced the company to cancel thousands of bookings.

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Now it should be noted that last year Airbnb and the Japanese government have come to some kind of understanding that made Airbnb legal to operate in the country. However it did come with a bunch of restrictions and requirements, such as Airbnb hosts having to register with the government and obtain a registration number.

The recent spate of cancellations was made to Airbnb properties that had not obtained a registration number that comes into effect on the 15th of June, even if they were already in the process of applying for it. According to Airbnb’s statement, “This is understandably frustrating, especially since many hosts are close to acquiring their licence. It’s particularly disruptive for guests who have a trip to Japan planned for the weeks and months ahead.”

As expected Airbnb will fully refund reservations that have been made and cancelled and are creating a $10 million fund to help travellers who might be forced to rebook accommodations in such short notice.

Filed in General. Read more about Airbnb and Legal.

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