Regulatory issues are not to be toyed with, issuing a warning for Bybit last week, Japanese regulatory agency issues the same warning to Binance for operating without clearance.
The Financial Services Agency (FSA), Japan’s regulatory authority, has issued a warning against Binance. The warning is for failing to obtain the requisite operating license under the new criteria.
Last week, the regulator issued a similar warning against the Bybit exchange.
Japan is regarded as one of the most progressive crypto nations, allowing crypto exchanges to operate with FSA approval.
In 2018, the Financial Services Agency (FSA) issued a similar warning. Binance is one of the most popular cryptocurrency exchanges, having users from all around the world.
However, it has been the target of authorities in recent years, beginning with Malta’s declaration in 2018 that Binance was not registered in the country.
Binance had previously stated that it operated out of the little crypto heaven nation, but then clarified that as a decentralized company, it has no centralized headquarters because its staff are spread over the globe.
Despite Binance is facing regulatory challenges in Japan, its American counterpart Coinbase recently got FSA approval to enter the Japanese crypto market.
As the largest crypto exchange in terms of trading volume, Binance has one of the largest user bases, and also has its own set of downsides.
Although the exchange claims to be compliant with every government and country in which it does business or provides services, it has had its share of compliance challenges.
To address the problem, the exchange went on a hiring binge in the United States, bringing on board a slew of former US government officials as policy heads and compliance experts.
This year has also witnessed considerable administrative changes at Binance.US, its subsidiary firm.