Binance CEO Reassures Crypto Traders, No Conflict With Japanese Regulators

Binance CEO Reassures Crypto Traders, No Conflict With Japanese Regulators

Binance founder and CEO Changpeng Zhao has taken to Twitter to express his disappointment to what he called “irresponsible journalism” and to reassure Binance customers that there is no conflict between the regulations of the Japanese Financial Services Agency and his company.

Changpeng Zhao Responds on Twitter to “Irresponsible Journalism”

As previously reported by NewsBTC, the Nikkei Asian Review ran a story claiming that Japan’s Financial Services Agency (FSA) was about to order Binance, one of the worlds largest cryptocurrency exchanges to cease its operations within the FSA’s jurisdiction pending official approval of its license.

Founder of the Hong Kong-based exchange has taken to Twitter since the story ran in order to challenge the article and to assure his customer base that Binance remains in compliance with the Japanese regulatory agency.

In a series of tweets, Zhao Changpeng addressed what he called the irresponsibility on the initial article, the content of the letter Binance received from the FSA and the steps his company is undertaking to continue trading legally in the country.

Responses on twitter have generally been positive to the way Changpeng Zhao has addressed the accusations even resulting in a Reddit subthread .

One of the charges in the Nikkei article is that as a Hong Kong-based exchange Binance doesn’t fall under the jurisdiction of the FSA’s authority. Thus, making it impossible to force the exchange to return Japanese funds in the event of a breach of security.

FSA Still Developing Regulatory Practices

This is a major concern of the FSA since the two largest cryptocurrency hacks in the short history of such crime were carried out against Japanese exchanges.

The Mt. Gox Scandal in 2014 which resulted in the loss of 650,000 Bitcoins led to regulations which were ultimately amended in April of 2017 as a licensing requirement.

Then again after the Coincheck hack of January 2018 which resulted in a loss of $500 million worth of NEM virtual coins. Coincheck was one of 16 exchanges that were allowed to operate while its license was under review and was ultimately found negligent in the hack.

Since then the FSA has ordered two exchanges to cease doing business and have fined and or punished others including Coincheck which has to date refunded $430 million of its investors lost funds.

The Nikkei article shook up trading across the market yesterday as the total market capitalization fell by 5% on the day and Bitcoin lost around 6% in 24 hours from $9,000 to 8,474 at the time of writing.

23.03.2018 / 00:14 140
Japan Warns Binance Exchange Over Licensing Japan Warns Binance Exchange Over
Japan's top financial regulator has issued a warning to cryptocurrency exchange Binance. In a statement published by the Financial Services Agency on
Binance CEO Refutes Financial Watchdog Warning Reports Binance CEO Refutes Financial Watchdog
The CEO of Binance, currently the world's largest cryptocurrency exchange by trading volume, has hit back at reports that the exchange is to receive
Cryptocurrency Exchange Binance Denies Regulatory Trouble in Japan Cryptocurrency Exchange Binance Denies
A recent report from Nikkei suggests that Japan’s Financial Services Agency (JFSA) will issue a formal warning to cryptocurrency exchange Binance,
Crypto Markets React Following Reported Japanese Pressure on Binance Crypto Markets React Following Reported
The cryptocurrency market has reacted today as Binance, one of the world’s largest cryptocurrency exchanges, has come under pressure from the
Cryptocurrency Exchange Binance Faces Regulatory Pressure in Japan: Report Cryptocurrency Exchange Binance Faces
Japan’s top securities regulator will warn cryptocurrency exchange Binance that it must cease operating in the country without a license or face
Bitcoin Price Falls As Markets React To (False) Japan Binance Threat [UPDATED] Bitcoin Price Falls As Markets React To
Bitcoin fell $500 in hours to hit two-day lows March 22 after news broke Japanese regulators may ban the world’s largest cryptocurrency exchange,
Comments (0)
Add a comment
Comment on