Binance Is Seeking A License To Operate In Japan
Binance, the world’s largest cryptocurrency exchange, is seeking a license to operate in Japan, four years after withdrawing due to a lack of permission.
Japan’s Financial Services Agency cautioned the world’s largest crypto exchange of operating without registration in 2018 in an effort to tighten regulations in the country’s digital money business.
Indeed, the regulator stated that Binance most likely enabled Japanese people to register accounts without verifying their identities. It further stated that if the exchange continued to operate without a license, it would face criminal prosecution.
A Binance spokesperson said in response to a request for comments:
“It would be inappropriate to comment on any conversations with regulators. Binance is committed to working with regulators and policymakers to shape policies that protect consumers, encourage innovation, and move our industry forward.”
Japan’s banking authority recommended lowering corporate tax laws for crypto assets last month. Lobbying organizations have called for improvements, claiming that high corporation taxes drive some businesses to migrate to Singapore and abroad.
Binance isn’t the only foreign company attempting to enter Japan’s cryptocurrency sector. This year, Temasek-backed Amber Group purchased DeCurret Inc., a cryptocurrency exchange that has been operating in the nation since 2018.
Furthermore, Japan legalized stablecoins as digital money in June. At the same time, it was disclosed that the government was considering eliminating token screening prior to listing. Indeed, it was reported at the end of August that officials were considering relaxing crypto tax laws.
Japan’s actions contrast with the stronger regulatory monitoring emerging in a number of nations following a $2 trillion wipeout in digital assets from last year’s high, which resulted in blowups at crypto hedge funds and lenders.
Following investigations from the securities regulator that resulted in an official warning to halt operating in the nation without a license, Binance’s billionaire co-founder Changpeng “CZ” Zhao 2018 abandoned a plan to construct a facility in Japan. It received a similar warning three years later for failing to comply with registration procedures.
Binance is present in Asia through collaborations in Thailand, Malaysia, Indonesia, and India.
Binance has been the subject of regulatory investigations in a number of countries, including the United States. In response, the company stated that it works with authorities and would continue to satisfy their needs.
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