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Binance issued warning for operating without a license

Binance

TL;DR Breakdown

  • Binance has been issued a warning by the Financial Services Agency of Japan.
  • The FSA claims that Binance has been giving its services to citizens of Japan without approval.
  • In the month of May, a similar warning was given to ByBit.

The world’s biggest crypto exchange platform, has been issued a warning by the Japanese authority Financial Services Agency (FSA). The FSA has blamed the exchange for resuming operations in the country without any official permission. A month ago, ByBit, another crypto exchange had suffered the same outcome. Both of these companies did not register with Japan before initiating operations in the country.

Back in the year 2017, when China had imposed a ban on crypto exchanges and trading, many crypto exchanges like Binance shifted to Japan. It was then when Japan become one of the first countries to establish clear-cut rules for crypto exchanges that seek to resume their operations in the country. A registration was mandated for all the crypto exchanges.

The situation between FSA and Binance

The crypto exchanges like Houbi decided to comply with the rules of the Japanese authorities, Binance did not follow these protocols as the FSA had declared. Due to this breach, the FSA has issued a warning to Binance. Back in 2018, Binance moved its operations to Malta. Thereafter, in the year 2020, the exchange had announced a restriction of users from Japan. Clearly, this wasn’t the case.

An upgrade in the Payment Services Act of Japan established more clear rules for crypto exchanges in the country. When Binance tried to re-enter the Japanese market with the help of negotiations with the company Tao-Tao, the deal went through. TaoTao was later acquired by the Japanese giant, SBI.

It is a notable fact that the company has been under surveillance for a long time now. Authorities from the United States, along with authorities from Germany and Britain, have all kept a close watch on the activities of the world’s largest crypto exchange platform. However, the CEO of the leading exchange, Changpeng Zhao, has vehemently declared that the company has ensured it followed all the protocols related to KYC and Anti-Money Laundering Policies in every country of operation.

Dennis Mugambi

Dennis Mugambi

Dennis is a content writer with a deep understanding of the blockchain domain and cryptocurrency field. He infuses cold data with flair to make technology and finances mind-blowing. His reports both fascinate and awaken the readers.

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