The Financial Services Agency (FSA) which is Japan’s regulatory body has issued a warning against Binance’s crypto exchange. This warning was issued because interrogation found that Binance operated without a specific license as enshrined in the new guidelines.
The regulatory body issued a similar warning against the Bybit crypto exchange last week. Japan is one of the most progressive crypto countries, where crypto exchanges are allowed to operate if approved by the FSA.
This warning is nothing new. In 2018, the FSA issued a similar warning. Binance previously stated that their company does not operate directly in Japan and stressed that it does not have a centralized headquarters as operations operate from all over the world.
While Binance faces regulatory hurdles in Japan, its American rival, Coinbase, got FSA permission to enter the Japanese crypto market a few days ago.
Binance is the largest cryptocurrency trading platform based on trading volume and has extensive reach. Binance stated that their party complied with every rule set by the authorities. Thus any conflicts and worrying sentiments will have an impact on the crypto community.
Recently Binance also faced a challenge where South Africa-based Absa Bank had barred its clients from conducting transactions as Binance was found to be non-compliant.
The market so far is still waiting for more feedback from Binance!
