The cryptocurrency industry was once again taken with concern when Nikkei, a Japanese publication, reported that popular cryptocurrency Binance could be forced to shut down its operations in the country. In reality, Binance Japan regulations are coming in to play.
Elaborating on its report, Nikkei had mentioned that the Financial Service Agency (FSA) of Japan was planning to take a strict action against the cryptocurrency exchange due to its operations in the country without proper registration.
It further stated that Binance does not comply with the regulatory requirements of the FSA, and failure in reporting the information of cryptocurrency traders as per the defined process is one of the reasons why FSA suspects that Binance does not employ “effective measures” when it comes to anti-money laundering.
The newspaper reported that the FSA was planning to call out Binance by name on its own website with a detailed warning against the exchange’s actions. It also mentioned that the regulatory authority was collaborating with law enforcement agencies to put a stop to Binance’s operations.
“The FSA plans to work with police to file criminal charges if Binance fails to halt its Japan operations.” Nikkei reported clearly.
Binance Japan Regulations, Head changpeng zhao denies allegations
Since Japan has long established itself as a crypto-friendly space, the news of its financial watchdog taking such strict measures jolted the cryptocurrency community throughout the world.
The panic was so profound that it caused Changpeng “CZ” Zhao, Binance’s CEO, to take to Twitter in order to clarify the company’s official stance and updates on the situation.
“Nikkei showed irresponsible journalism.” Zhao wrote.
He mentioned that the exchange was in talks with the regulatory authority and such measures remained undiscussed.
“We are in constructive dialogs with Japan FSA, and have not received any mandates.” He stated further.
“It does not make sense for JFSA to tell a newspaper before telling us, while we have an active dialog going on with them.” He concluded.
The situation is simple, its just Binance Japan regulation, nothing more that wide FUD running through the community.
However, the situation remains unclear as of now and further developments are to be expected.
Update on Binance Japan regulation
CZ or Zhao has noted on twitter :
“We received a simple letter from JFSA about an hour ago. Our lawyers called JFSA immediately, and will find a solution. Protecting user interests is our top priority.
Confirming that Binance did indeed receive communication from JFSA and are in talks with them in how they will deal with the matter. Zhao reassures traders that there is no need for concern, yet notes that there might be some negative news on the horizon. Binance may have to increase its levels of KYC and adherence to AML to comply with the Japanese authorities but it is unclear at the present moment.
“No need to worry. Some negative news often turn out to be positive in the long term. Chinese have a proverb for this. New (often better) opportunities always emerge during times of change.”
Remember, there is no Binance Japan shutdown. Just Binance Japan regulation. Never listen to the FUD.
Disclaimer: It is necessary to note that we are basing our perspective on the statements of the Binance CEO who has been transparent and on honest in the past, but until we also hear confirmation from JSA, we will be going by the official words of the Binance CEO.