The Japanese Financial Services Agency (FSA), plans on warning the world’s largest cryptocurrency exchange market Binance to stop operating without a related license, recently developed in Japan, after the significant attack on previously unregulated exchange market Coincheck, resulting to half of a billion in damages.
Hong-Kong founded Binance managed to become the most successful digital-asset exchange market in less than a year, starting in summer 2017. While the exchange is focused strictly on crypto-to-crypto trading and does not provide options to deposit or withdraw fiat currencies, the Japanese government issued new regulations that must be followed by all digital asset brokers in the country.
Coincheck complied with the new regulations, forced to dismiss untraceable cryptocurrencies like NEM, Dash, Monero, and Zcash from their exchange. It is possible that Binance would have to address similar issues as well in order to maintain operations in the country of the rising sun.
Governmental institutions are already discussing the possibility to regulate all cryptocurrencies under the form of a new digital-asset class and condemn those that do not fulfill the conditions.
Japan, is one of the most active countries when it comes to cryptocurrency exchange, therefore they had already created the special license last year. But it took a hard hit on Japan’s largest exchange Coincheck to start shutting down any unregulated operations in the field of cryptocurrencies in the country.
Zhao Changpeng, Binance CEO commented that he was working on issuing a license in Japan since January, but the recent warning may complicate the procedure.
The incident was first reported by Nikkei, stating that Bitcoin’s market value dropped 1 percent at 5:57 p.m. in Hong Kong due to the unpleasant news.