A regulatory rebuke which was issued by one of the largest cryptocurrency exchange has been giving Bitcoin investors sleepless nights.
This digital currency has dropped by 4.4% to the $8,506 level on Thursday. This was after Japan financial services agency was suspected to be advising Binance which is a crypto trading organization founded by Zhao Changpeng to quit its operation in the country without using a license. Binance has been increasing the staff size in Japan and has gained expansion with lack of official permission. This is according to the information from an individual with FSA plans.
Nikkei was the first organization to report this news. According to the news, the governments in the entire world have been improving the cryptocurrency scrutiny due to the worries that cryptocurrencies are facilitating everything from fraud to tax evasion and money laundering. Japan is considered to have one of the strongest and active cryptocurrency markets in the world. Therefore, they were involved in the introduction of a licensing system for the virtual currency exchanges in an effort to make sure that there was enough oversight.
Bloomberg News was informed by Binance in January that they were making efforts to acquire a license in Japan. Therefore, Zhao announced that the exchange had engaged in a constructive dialogue involving the FSA and has not been successful in receiving any mandates from the regulators.
Therefore, the FSA has been involved in the clamping down of cryptocurrency venues, and this was triggered by the $500 million theft from Coincheck which is a Japanese exchange. In February, the regulator was involved in issuing of an administrative penalty against a Macau-based Blockchain Laboratory LTD. This was due to the issuance of seminars which provided consultation services without a license in Japan. In the past month, several cryptocurrency venues were suspended due to poor security measures.
Binance has been for a long time been ranked as the biggest cryptocurrency exchange according to volume last year. This is according to Coinmarketcap.com. According to the website, it held up the most volume for a span of 24 hours by trading at about $1.8 billion.