• Binance is operating without registration, according to Japan’s financial regulator

  • The country’s top financial regulator has issued another another warning, claiming that the crypto exchange is still operating without a license in Japan.

    The Financial Services Agency of Japan (FSA) has issued a warning to Binance, claiming that the exchange is operating in Japan without being registered with the government. A source close to the situation confirmed the veracity of the notice.

    In Japan, the Financial Services Agency (FSA) initiated a registration process in 2017 that requires crypto firms to register with the agency in order to continue operating.

    The decision was made in response to a series of hacks and instances of ill-equipped personnel running crypto firms, particularly exchanges. The fall of Mt.Gox in 2014 is likely the most well-known, but according to another source, hackers stole over $500 million in the first half of 2018.

    The FSA has sent Binance its second warning. The first was issued in 2018, following which the exchange relocated to Malta (before again moving to the Cayman Islands).

    Users in Japan appear to be able to access the site and make trades at this time. Binance has yet to reply to our enquiries about the incident.

    Binance’s CEO, Changpeng “CZ” Zhao, told us that the business will not have a formal headquarters at this year’s Ethereal Summit.

    Binance’s run-ins with the law By volume, the bitcoin exchange is the industry’s largest trading platform. This title, on the other hand, hasn’t come easily. Binance has been in the center of a number of regulatory clashes all over the world.

    The Malaysian government made a similar notice to Japanese officials in 2020, claiming that the exchange was illegally operating. The stakes have been significantly higher in the United States. The Commodity Futures Trading Commission (CFTC) was reported to be investigating Binance early this year for allowing US citizens to trade derivatives without registering with the CFTC.

    Binance has also been working hard to resolve its regulatory issues. Brian Books, the former acting Comptroller of the Currency (OCC), was appointed to run Binance.US, the exchange’s US-based subsidiary, in April.

    It remains to be seen whether Binance’s operations will be halted as a result of the FSA’s recent warning. However, given the platform’s history, this notice is unlikely to have much impact.

    What's your reaction?