New report suggests that Binance could be facing regulatory pressure from Japan’s Financial Services Authority.
Cryptocurrency prices experienced a pullback after Nikkei, a Japanese publication, reported Japan’s Financial Services Authority may order Binance to cease its operations in the country until it grants official permission.
A person familiar with the FSA’s plans told Bloomberg: “Binance has several staff in Japan and has been expanding without official permission”.
According to the report from Nikkei, Japan’s Financial Services Authority is concerned that Binance’s operations may put the country’s investors at risk and facilitate criminal activities such as money laundering and fraud.
However, Binance CEO Changpeng Zhao refuted the report and stated on Twitter that they “are in constructive dialogs with Japan FSA, and have not received any mandates.”
Nikkei showed irresponsible journalism. We are in 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 we have an active dialog going on with them.
— CZ Binance (@cz_binance) March 22, 2018
Binance is the number one cryptocurrency exchange by trading volume. Since Binance generated $1b in investment funds and went live last year, it quickly surpassed Coinbase and other exchanges.