Saturday, February 4, 2023

Japan’s FSA Issues Warning Against Binance

The Financial Services Agency (FSA) of Japan issued an order against Binance, one of the world’s largest crypto exchanges in terms of trading volume, for operating in the country without authorization.

On June 25, the FSA issued a warning notifying that Binance has not been registered in Japan to offer its services in the country. 

A month ago, the financial regulator in the country issued the same warning to Bybit, the crypto derivatives exchange.

This is not the first time, Binance received a warning from the financial regulators in Japan. The FSA released its first warning in March 2018, against the crypto exchange giant stating that if it continues to operate in Japan without authorization, then Binance would have to face criminal charges. The cautionary announcement by the Japanese financial regulatory body forced the crypto exchange to shift its headquarter to Malta.

According to the report, Japan was one of those countries that made it mandatory for crypto exchanges to register their businesses. 

In early 2018, Coincheck, a Japan-based crypto exchange, was hacked by scammers, which became one of the main reasons for the FSA to implement rules in the country with firm hands.

As Binance moves its business to Malta from Japan, it attempted to sign a deal with local exchange TaoTao, however, the crypto exchange giant did not get successful.

Currently, Binance has not publicly responded to the warning issued by FSA, but it appears that the Japanese website of the trading platform is still accessible from Japan’s IP addresses and the registration page of the new user.

Binance is considered one of the world’s major crypto exchanges, Since its inception, the crypto exchange has expanded its services and now has a business presence from spot to derivatives trading and from crypto mining to lending.

Meanwhile, the crypto exchange is being investigated by two different regulatory bodies, including the European regulators and the US regulators. The European regulators probed Binance because the crypto exchange has been offering stock tokens trading. While on the other hand, the US issued a warning against Binance because the crypto exchange allowed its users to deal in derivatives trading.

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