Japan Warns Binance Exchange Over Licensing

The Japanese financial regulator has issued a warning to Binance over its operation legitimacy in Japan.

AccessTimeIconMar 23, 2018 at 3:00 a.m. UTC
Updated Sep 13, 2021 at 7:43 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Japan's top financial regulator has issued a warning to cryptocurrency exchange Binance.

In a statement published by the Financial Services Agency on Friday, the agency confirmed Thursday's news that suggested Binance was about to be warned by the financial watchdog given its lack of registration with the regulator.

Yet the statement does not entail whether the regulator is weighing criminal charges, as indicated in the previous report from Nikkei. The exchange told Bloomberg earlier this year that it was working with Japanese regulators to secure a license.

Responding to the FSA statement, Zhao Changpeng, Binance's CEO, confirmed receipt of the warning letter and stated the firm's legal team is in dialogue with the agency.

Founded in summer 2017 and based in Hong Kong, Binance has emerged as one of world's largest cryptocurrency exchanges by trade volume in the past six months. According to data from Alexa, the firm currently sees roughly 9 percent of its traffic visit from Japan.

The FSA has warned other overseas firms about offering services to Japanese citizens in the past.

As previously reported by CoinDesk, the agency issued multiple warnings last month to a Macau-based cryptocurrency firm that provided bitcoin purchases and initial coin offering services to Japanese investors. The firm pulled out of the country following the warnings.

Yen image via CoinDesk's archive

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.