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CZ confirms FSA notice – Binance in trouble in Japan?

Prerana Sarkar



CZ confirms FSA notice - Binance in trouble in Japan?
Source: Flickr

Binance, one of the most popular cryptocurrency exchanges, based in Hong-kong has received a notice from Japan’s Financial Services Agency [FSA]. The notice was served due to some unregulated expansion of business in Japan by Binance and concerns regarding customer protection.

Today morning, CEO of Binance, Changpeng Zhao [CZ], took to Twitter to announce that Binance has received a notice from Japna’s FSA.

CZ's announcement regarding the JFSA notice

CZ’s announcement regarding the JFSA notice

This announcement was made right after CZ claimed that there was no notice given by FSA to Binance stating:

“Nikkei showed irresponsible journalism. We are in constructive dialogs with Japan FSA, and have not received any mandates. It does not make sense for JFSA to tell a newspaper before telling us, while we have an active dialog going on with them.”

Japan’s FSA has started to follow strict regulations to prevent another hack from taking place like that of Coincheck and Mt. Gox. Coincheck turned out to be the 2nd biggest crypto-heist losing almost $530 million worth NEM, following which, FSA has shut down several unregulated and unregistered exchange platforms in Japan and also suspended exchange platforms such as FSHO and Bit Station.

The announcement has created FUD in the market and the value of all the coins have started to fall again right after it started to rise. Investors fear that since 1/4 of the Binance customers hail from Japan, the market might fall if it’s suspended.

Yuzo Kano, CEO and Co-founder of Bitflyer, Japan’s largest virtual currency and blockchain company, says:

“If you do not stop the business, you will be charged with criminal charges in collaboration with the police authorities etc. It seems that the Financial Services Agency will put a knife on the problem of illegal businesses including Binance. There were foreign business operators claiming that regulations in Japan do not matter if I do business overseas”

William Turella, a cryptocurrency enthusiast says,

“For people who live in Japan. Are your funds save ?”

Derek Charles, a cryptocurrency trader says,

“Cool! Honestly, I want to get out of crypto pretty badly, because I’m awful at trading lol and don’t know when to sell, but I really really like Binance, and I see a wildly productive future over the next few years. The road bumps might be this year, but once they are out, it’s up”

To which CZ replied saying,

“just hodl then. simple, it’s what I do. :)”

Thomas, a Twitterati says,

“You do an awesome job with your exchange. You probably have the best exchange out there. A few hiccups along your path, but you do a good job overcoming problems as they arise. Stay ethical, keep doing the right thing, and great things will happen!”

Razvan Balica, a Twitterati and investor says.

“Now dumpling probably.”

To which CZ replied:

“Didn’t you know? It’s “sell on rumors, buy the news”. By the time things are confirmed, dump is over. The guys (maybe you too) saying to dump are just trying to buy from you at the bottom.”

Razvan Balica added:

“Nah, just kidding man. I’m not suggesting people to dump, only having a laugh on panic sellers.”

Travis Crypto, another Twitterati who uses the exchange platform says,

“So are my funds safe on Binance? I live in the United States.”

CZ even made another announcement regarding the same to bring down the panic spreading in the market stating:

“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.”

According to CoinMarketCap, Bitcoin is currently trading at $8465 with a market cap of $143 billion, dipping more than 6% in the past 24 hours, Ethereum is at $523 with a market cap of $51 billion, dipping more than 8% in the past 24 hours, Ripple is at $0.63 with a market cap of $24 billion, dipping more than 7% in the past 24 hours.

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Prerana Sarkar is a part of AMBCrypto's News Reporting Team from January 2018. She is a Journalism major from Mount Carmel with two years of writing experience in Bitcoin and Blockchain related articles. Prerana does not hold any value in cryptocurrency or its projects