Binance the 3rd largest and major cryptocurrency exchange in terms of liquidity on the CoinMarketCap portal is going to discontinue its trading services in Japan from its main platform, Binance.com, as per the latest updates on the company’s website.
After Kraken, Binance the leading cryptocurrency exchange and one of the most trusted platforms where people can trade BTC, BNB, and 100’s of other cryptocurrencies in a user-friendly way has decided to soon phase-out the provision of services for Japanese residents. However, the restrictions have not yet implemented and Japanese natives still can indulge in the transactions and operate the trading platform normally until the final date declares out.
Binance Caught into Regulatory Issues!
In March 2018, reportedly Binance got a warning from the Japanese regulators (Financial Services Agency) concerning security affairs which indicated that the organization is lacking in the registration process with the Japanese regulator for obtaining the exchange license. Later, the exchange had shifted its operations to Malta. Probably due to the regulatory issues, the company wants to discontinue its services because the establishment is not legally registered in Japan.
However, allegedly the chances are Binance may be planning to have another strategy similar to the Binance.US project. Last year, in June 2019, the company had taken up the major step for U.S. customers and declared that it would stop its services for them by September 2019. Following this discontinuation, it came out with the new exchange called Binance.US initiative in collaboration with the Californian-registered firm BAM Trading Services which was announced via a medium blog post on June 14, 2019.
Competitors Obtained FSA License
After seeing the warnings and the repercussions from the FSA, there are many other cryptocurrency serving organizations and the competitors of Binance have successfully acquired the operating license from the Japanese regulatory authority. Among others include Huobi in Jan 2019 and LINE’s BitBox crypto exchange in September 2019.