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Japanese lawmakers have officially warned Bainance about his activities


Japan Financial Services Agency has officially warned Bainance of operating in the country without a license.

to the the report Crypto Briefing, Japan Financial Services Agency (FSA), has issued an official warning against Bainance Exchange (the world’s largest exchange in terms of daily trading volume).

The FSA is the main financial regulator in Japan. In a recent document, the organization warned Chang Peng Zhao, founder and CEO of Bainance Exchange, of “participating in a digital asset exchange business without an official license.”

Bainance Exchange announced in 2020 that it would stop providing services to Japanese customers; However, the company has not yet fully implemented its decision.

It has already been revealed that Bainance Exchange operates in Malta without a license. In February 2020, the Maltese Financial Services Authority announced that the exchange had not yet formally applied for a license, despite relocating its offices to the island of Malta.

The exchange has also faced other problems from financial lawmakers in recent months. In April 2021, the World Finance Organization (an independent international legislature based in the United Kingdom) expressed concern about the launch of a tokenized stock trading market at Bainance Exchange. The legislature had expressed concern about whether the shares offered in the securities binance were considered securities.

According to other reports, Bainance Exchange may have been monitored and evaluated by the Commodity Futures Trading Commission (CFTC) for providing services to American citizens through its website. However, the US legislature has not yet filed any formal charges against Bainance.

In May 2020, Japanese lawmakers imposed strict regulations on digital currency exchanges in an effort to prevent fraud and hacking attacks. According to FSA rules, all exchanges operating in Japan, both domestic and foreign exchanges, are required to obtain an operating license. Exchanges are also required to submit an annual business report to the agency.

Japan was the first Asian country to legalize the use of digital currencies as a method of payment after amending the Payment Services Act in 2017. Despite the popularity of digital currencies, the country has seen digital currency exchanges such as Matt hacked several times. It was Mt. Gox and Coincheck who inflicted billions of dollars in losses on the country.

The Japan Financial Services Agency has previously stated that it will enforce FATF travel rules from March 2021. In order to prevent money laundering, this law requires digital currency exchanges to record and maintain records of digital currency transfers (exceeded). Now, to fully implement this law, the registration of all digital currency exchanges operating in Japan has become one of the main priorities of this country.

Last week, the FSA issued a similar warning to the Singaporean exchange Bybit for operating without a license in the country.

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