Airbnb says the temporary removal of tens of thousands of listings from its platform in Japan will have benefits for it and the sector over time.
Unconfirmed numbers suggest that the site has around 14,000 listings in Japan - down from close to 60,000 earlier this year.
The private accommodation sharing giant was forced to take action head of the introduction of a new law - known as "minpaku" - that requires hosts to register their properties with local authorities.
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Many have not done so yet, nor had they notified their use of sharing sites such as Airbnb under a previous regulatory framework.
Airbnb says it informed hosts "who have not yet obtained their notification number to let them know that they will need this to accept any new bookings".
An official says: We have long-supported the home sharing law in Japan, we worked with the government to craft it, and we believe it will help more people share their homes on Airbnb.
"The lack of clear rules for home sharing has made many people reluctant to take the next step and host. The law in Japan solves that problem.
The short term axing of listings in Japan appears to be a process worth doing for Airbnb, not least due to the current lack of a solid regulatory process for home owners who wish to rent out their properties.
The official says: "Our work in Japan is consistent with our work with governments around the world. We consistently take the long view and work with governments to ensure our community can grow for decades to come."
It is unclear as yet if other private accommodation sites will follow Airbnb's lead.