Japan Warns Binance For Operating Without A License

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No boring days in the world of crypto! This time there’s news from Japan, where a regulator has sent of a warning to Binance, one of the largest exchanges in the world, for operating without a license.

CEO Changpeng Zhao confirmed receipt of the warning, saying that company lawyers are working with the regulatory body to find a solution.

Nevertheless, this news sent Bitcoin a little down, where it was trading over 3% lower than before.

Binance Logo

The JFSA, the country’s Financial Services Agency issued the warning on Friday to Binance, which was operating in Japan through the Internet without a license. The statement (PDF file) says that the cryptocurrency exchange had several staff in Japan, and had been expanding without official permission.

Which is interesting, as Japan is seen as perhaps the most crypto friendly nation on the planet.

And it was just last year that it introduced a licensing system for virtual currency exchanges in order to improve oversight.

This news adds to the signs that governments around the globe are stepping up regulations for these digital currencies in order to safeguard investments and trading of these coins. Of course, there are also cases of these exchanges being hacked.

As was recently the case with Coincheck, which refunded all consumers earlier this month.

Stands to reason that the FSA has started clamping down on cryptocurrency venues in the wake of a $500 million theft from the abovementioned Japanese exchange.

Binance, of course, consistently ranks as the world’s largest exchange by volume. It traded about $1.6 billion in cryptocurrency in the past 24 hours.

Some streamlined regulations would go a long way in establishing trust between all parties here.

Any thoughts here?