Japan’s financial market regulator has issued a warning to the largest cryptocurrency exchange, Binance. According to the Financial Services Agency (FSA), Binance is not authorized to offer services in Japan.
The FSA issued the warning on June 25, stating that Binance was still promoting and offering services in the country despite being unregistered in Japan.
FSA Warnings to Exchanges
The warning by the FSA to Binance is not the first the exchange has received. This is the second warning that the exchange has received from the FSA. The first warning was given in 2018 where the FSA stated that Binance was illegally operating in Japan and would face criminal charges. This warning led to Binance shifting its base from Japan to Malta.
The FSA was among the first regulators to require exchanges to seek registration before offering services. The watchdog has been firm to ensure that the regulations are adhered to for protecting investors.
Binance is yet to given an official response to the recent warning by the FSA. However, the exchange is still accessible by people living in Japan. IP addresses in the country can still access the user registration page. In 2018, Binance had responded to the FSA, stating that it was in dialogues with the regulator.
In May, the FSA also gave a similar warning to the Bybit crypto exchange. Just like with Binance, Bybit can still be accessed by IP addresses from Japan. The exchange was also warned from offering services to residents of Japan because it was licensed to do so.
Binance had initially tried to expand its official operations in Japan by signing a partnership deal with TaoTao, a local exchange. However, the partnership deal failed to go through.
Binance Tussles with Regulators
Binance is the largest crypto exchange globally, and it has operations in many countries. The exchange has one of the largest networks, and over the years, it has obtained licenses in multiple jurisdictions.
Besides offering crypto trading services, Binance has also expanded to other sectors, including derivatives trading. It also offers crypto mining services and lending, giving its users a wide array of offerings to help them earn income.
Some of the offerings by Binance have landed the exchange into loggerheads with European and US financial market regulators. Its stock tokens trading has been under scrutiny in recent months. Nevertheless, Binance has taken measures to maintain compliance in most of its offerings and operations.