LIVE NOW

Binance receives notice from authorities in Japan

Andrew Munro 23 March 2018 NEWS

The Binance CEO has met news of a Japan shutdown with bafflement and mild irritation.

Update: News of licensing issues surfaced in Japanese news, causing some bafflement and mild irritation, shortly before Binance received a letter from Japan's financial service authorities.

Binance CEO Changpeng Zhao has now said on Twitter that Binance is in contact with regulators to work through the issue.

We received a simple letter from JFSA about an hour ago. Our lawyers called JFSA immediately, and will find a solution. Protecting user interests is our top priority." - Source


Binance is one of the world's largest cryptocurrency exchanges by volume. It may have been one of the exchanges that received a warning in Japan's recent regulatory sweep of 15 exchanges in the wake of the $534 million Coincheck NEM heist.

Prominent Japanese news outlet Nikkei has since reported that Binance was found to be operating in the country without appropriate licensing, and would need to be shut down or face criminal charges.

"The company was operating in Japan with no registration and it was judged that investors could suffer damage. If it does not stop business, it may face criminal charges from police authorities," Nikkei reported.

Binance has since criticised Nikkei's "irresponsible journalism" and said that it's currently in conversations with regulators and that there's no shut down on the horizon.

"Nikkei showed irresponsible journalism. We are in constructive dialogs with Japan FSA (financial services authority) 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," said Binance CEO Changpeng Zhao on Twitter.



Japan has seen a lot of cryptocurrency enthusiasm from its citizens, and corporations, so far and its authorities have previously expressed concern for its citizens' financial risks, and the potential of cryptocurrencies to facilitate criminal activities.

It got a lot of early exposure to both, with the now-famous story of the early Mt. Gox bitcoin exchange unravelling in Tokyo, and continuing in the country's bankruptcy courts for years.

Binance has so far demonstrated an impressive track record in user security. It's previously countered attacks that probably would have taken down most other exchanges and followed them up with sizable bounties for information leading to the arrest of the culprits.

It's also shown a solid commitment to working with regulators around the world and has even preemptively over-regulated itself in the past.


Disclosure: At the time of writing the author holds ETH, IOTA, ICX, VEN, XLM, BTC, XRB

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Latest cryptocurrency news

Picture: Shutterstock

Latest crypto guides

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Ask a question
Go to site