If the rumor Nikkei posted is anything to go by, the Japanese Financial Services Agency (FSA), has requested Binance, the largest exchange on the cryptocurrency market, to end its activity. The government authority claims the fintech company is illegal because it has no authority registration.
Binance denied on Twitter that the exchange wasgoed closed ter Japan:
Nikkei displayed irresponsible journalism. Wij are ter constructive dialogs with Japan FSA, and have not received any mandates. It does not make sense for JFSA to tell a newspaper before telling us, while wij have an active dialog going on with them.
— CZ (not providing crypto away) (@cz_binance) 22 March
The Settlement Law of 2005 states that trading is permitted only for those businesses which are applying or already registered officially ter Japan. However, Nikkei reported that many unregistered entities were actively operating there.
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Binance to Spawn a Possible Threat
The FSA may have commenced to vertoning its categorical position due to the possibility of Japanese traders suffering from a scam causing an enormous money outflow due to poor security on the cryptocurrency exchange.
According to Nikkei , “If the warning does not zekering the business, the Financial Services Agency will charge the police authorities with a suspected disturbance of the revised fund settlement law, and the police will investigate. After warning, the concentrate will be on how to come back to Japanese customers.”
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Japanese Fintech News
Actually one might find no visible reason for shutting Binance down. At the present uur, the FSA has given 16 licenses to digital currency exchanges, such spil bitFlyer Inc. and Quoine. 16 more were granted an chance to work without any license, including Coincheck Inc., which experienced a big hack at the beginning of the year.
Nevertheless, at the other side, the mentioned hack had a positive effect too. It made petite nave exchanges care more about its legality documentation fearing the risk of being eliminated. The FSA already imposed a fine on Macau-based Blockchain Laboratory Ltd. because it had given seminars and consultations to Japanese people without a license. Furthermore, it has recently suspended some circunscrito firms for poor security measures.
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Binance Moving to Malta
The latest reports state that Binance has chosen a fresh country. It is now programma to open an office te Malta and embark a “fiat-to-crypto exchange” on the European island nation.
Chief Executive Officer of Binance Zhao Changpeng commented:
“We are very certain wij can announce a banking partnership there soon. Malta is very progressive when it comes to crypto and fintech.”