The world’s largest cryptocurrency exchange, Binance, just received a huge warning from Japan. The exchange is listed in Hong Kong but it’s servers actually reside in South Korea. Since the Chinese did that firewall ban, the Binance IPs moved to the British Virgin Islands and other locations to avoid regulatory issues in the future.
Just recently, Binance expanded to Japan and the Japanese Financial Service Agency (FSA) will be issuing a formal warning to the exchange in the near future. Allegedly, the major exchange expanded into the country without permission from the regulatory agency.
Presently, Binance is the world’s largest cryptocurrency trading platform, which holds a 24-hour volume of nearly $1.9 billion. The company intends to apply for an FSA license to remain in Japan but the fact that it didn’t seek this before moving into the country, gives the exchange a bad light among investors.
Binance’s CEO, Changpeng Zhao just recently tweeted about the matter and said:
“We are in constructive dialogs with Japan FSA, and have not received any mandates,” Zhao said. “It does not make sense for JFSA to tell a newspaper before telling us, while we have an active dialog going on with them.”
Presently, the Japanese regulator has issued 16 different licenses to cryptocurrency exchanges. What remains unclear is the 16 others that were given permission to operate, without a license. Coincheck Inc, applied for their license back in September of 2017 and it still hasn’t been approved. Since then the exchange suffered the largest cryptocurrency hack of all time.
Now, the FSA is scrambling and claims that the delay is due to the exchange’s involvement with anonymous digital tokens such as ZCash, Monero, and DASH. CoinCheck has decided to de-list the three cryptocurrencies to remain in compliance with the regulators.
I wonder what other exchanges will be found non-compliant with the FSA next?
Featured Image: CNN