Crypto exchange Binance could be forced to shut down

Binance could now be forced to shut down.

The crypto exchange Binance lacks the licenses thay need to operate in Japan, and could now be forced to shut down. Photo: Shutterstock

Totte Löfström

totte.lofstrom@trijo.co

Japan's Financial Services Agency is planning to give the crypto exchange Binance a warning. The exchange could now be forced to shut down.

The crypto exchange Binance has grown explosively during the past few months, much thanks to the fact that a lot of people around the world wanted to buy Bitcoin during the rush in November and December last year. According to their own reports, they managed to attract more than five million new users in just six months, and if you look at the trading volumes, they are the world’s largest marketplace for trading cryptocurrencies.

Binance started out in China, but when the country proposed a general ban on crypto trading, the company moved its servers and a big part of the operation to Japan.

Since then, the company has opened new offices in Taiwan.

Could be forced to shut down

But now, Japan’s Financial Services Agency is planning to give Binance a warning. The reason is that Binance has not obtained the licenses required to operate in Japan, writes Bloomberg Markets.

It is also believed that Japan’s Financial Services Agency is about to make Binance stop all operations until the required licenses have been obtained.

As late as January this year, Binance said in a comment to Bloomberg News that they are trying to get a licens in Japan. If they get a warning now, that process could be complicated.

Binance has not yet commented on the potential warning, but the price of bitcoin dropped closer to 300 dollars immediately after the news came out. And as often before, that dragged large parts of the altcoin market down as well.

Update:

Binance CEO Changpeng Zhao has now commented on the news on his Twitter account:

Trijo News is a new news outlet covering crypto finance and the blockchain space. This is the first article that we publish, but more will come soon.

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