Binance is an Hong Kong based exchange that had opened doors in July 2017. It had raised around $ 15 millionthrough an ICO. It’s one of the largest cryptocurrency exchange by daily volumes as compared to peers like Huobi, Okex etc. Some of the unique features of Binance at the time was the low brokerage fees. Another was the discount received from using the BNB token as a mode of trading between these currencies.
According to their sources, Binance is currently operating without a license in Japan. This makes the regulators believe that the investors in Binance would face heavy losses.
This comes after the wake of the Coincheck Hack after people had lost over $530 million dollars in XEM to a hack. The country known for their liberal policies towards cryptocurrencies was put in the back foot. The financial regulators now have stepped up the scrutiny on unregulated cryptocurrency exchanges to protect investors. The Coincheck hack also highlighted the need to have transparency about an exchange’s daily operations. This would ensure that the platform would be able to measure up to the highest possible standards for security, compliance etc.
Some key concerns that the Japanese regulators have with Binance is their failure to verify the identification of Japanese investors during account creation. They also believe that Binance doesnt have adequate anti money laundering systems because of the lack of KYC systems in place for investors.
[UPDATE] A response from Changpeng Zhao, CEO of Binance. They are in talks with the FSA for obtaining the license.
Discuss this news on our Telegram Community. Subscribe to us on Google news and do follow us on Twitter @Blockmanity
Did you like the news you just read? Please leave a feedback to help us serve you better
Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.
In the rapidly evolving landscape of web-native payments it has become clear that new infrastructures…
A New Era for Global Trade: Alibaba Taps JPMorgan's Blockchain Global commerce has long been…
The Promise of Web3 Meets a Centralized Reality Web3 was built on a revolutionary promise:…
Bitcoin's Sudden Plunge Shakes the Crypto Market The cryptocurrency market is awash in red after…
Macro guru and Real Vision CEO Raoul Pal shone the spotlight on a rising layer-1…
As the technology landscape transforms at lightning speed, AI Companions has positioned itself as a…