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Binance Faces Regulatory Pressure in Japan

Japan’s top securities regulator warns cryptocurrency exchange Binance that it must cease operating in the country without a license or face enforcement action.

According to a person familiar with the matter, Japan’s Financial Services Agency (FSA) will issue a formal warning to Binance, which has allegedly begun expanding operations into Japan without permission from the regulatory agency.

At present Binance is the world’s largest cryptocurrency trading platform, with a 24-hour volume of nearly $1,9 billion. The exchange has its own utility token – BNB – and the exchange operator has announced that it has begun development on its own public blockchain, which will be used as the foundation for a decentralized exchange (DEX).

Binance is going to apply for an FSA license, but the fact that it expanded its operations into this jurisdiction without regulatory approval could attract more scrutiny to the company’s application.

Binance CEO Changpeng Zhao tweeted that the company was engaged in constructive dialogue with the FSA.

«We are in constructive dialogs with Japan FSA, and have not received any mandates», – Zhao said.