The current biggest cryptocurrency exchange platform in the world based on trading volume has decided to move headquarters to Malta after the Financial Services Agency, Japan’s finance regulator, issued a formal warning to the company. The waning has been issued to Binance for not registering itself to the finance regulatory organization of Japan.
After the revision of Payment Services Act last year, Bitcoin has become a recognized method of payment in Japan. This allows Japan’s finance regulator to mandate the registration of all crypto exchange platforms in order to operate in the country. A license can be earned if the exchange is willing to adhere to the guidelines of FSA. FSA has issued a formal warning to a number of crypto exchanges operating in the country and Binance is no exception.
Binance CEO Changpeng Zhao received a letter dated 23rd of March that – on behalf of the FSA – warned the exchange platform to cease operations in Japan without a license. According to his own words, Binance chief has had its legal team in contact with the JSFA to find a solution. The company also stated that it will seek an FSA license but they have already allowed Japanese residents to trade on the exchange and place the staff in Tokyo. A report was also published on the day that said that FSA is going to issue a formal warning to Binance. Changpeng Zhao declared the report as irresponsible journalism and all the details above were released soon after.
Binance has also recently announced that it is about o open an office in Malta. The company is originally based in Hong Kong and is also in a clash with Hong Kong’s security regulators. Moving to Malta is not all, the company is also planning to initiate its first fiat-to-cryptocurrency trading pairs. Such a move will ensure an even stronger foothold of the crypto exchange platform as the worlds most popular cryptocurrency exchange (currently, Binance is the largest crypto trading platform with a 24-hour trading volume at about $1.6 billion).
In an interview with Bloomberg, Binance chief said that Malta is very progressive in crypto and fintech sectors and that he is sure that the company can find a banking partnership in Malta quite soon. Changpeng Zhao also revealed in the interview that he has received an invitation by the government of Malta to sit in the reviewing of an upcoming bill that is intended solely to create an encouraging climate for cryptocurrency projects, companies, and startups. This bill is a major step in Malta’s recent efforts to attract fintech startups.
And finally, Binance has also been planning to build a decentralized cryptocurrency exchange called DEX which is set to operate alongside the company’s order-book platform which is a centralized exchange service. Seems like being on the top has its own advantages but the company still has to face a lot of clashes with local governments in the countries where they operate.