The Bitcoin exchange operates without any registration in the Japan, implying the claim of illegal activity.
The FSA, the Financial Services Agency in Japan, is the prime financial market regulator. The FSA warned against Binance because the cryptocurrency kept offering services regardless of the authorization.
The notice took place on Friday. In the statement, Binance does not register with the FSA yet provides crypto exchange services. Last month, the agency sent another warning to Bybit, a crypto derivatives exchange.
For Binance, this is the second time the Japanese FSA has warned them. The first warning was in March 2018. In the first warning, the agency clarified that if the crypto exchange giant does not obtain a license, it will receive criminal charges. Since then, Binance moved its offices out of Japan to Malta.
Binance in Japan
Japan is one of the first countries to regulate cryptocurrency exchanges. They require compulsory registration. After the Coincheck hack at the beginning of 2018, FSA implemented the rules firmly. Despite its exit, Binance attempted to access the Japanese market through a partnership with Tao Tao, a local exchange. However, their talks did not turn into a deal.
Binance did not openly address the warning. Their Japanese website is available for new user registration, regardless of Japanese IP addresses.
Regulations Target Binance
Binance transformed into a significant crypto exchange since the first day they launched. They expanded services varying from crypto mining or spot to lending or derivatives trading over the years.
At the same time, the digital currency market is under inquiries by regulators in Europe and the USA. The reason is their offerings of stock tokens trading in Europe and derivatives trading in the USA. On the other hand, Binance always managed its place as an acquiescent firm in all jurisdictions.