FSA threatens Binance

Published by Belu.ga el 03 Apr 2018 in criptoccurencies

FSA threatens Binance

Binance's cryptocurrencies exchange is on the trail of the Financial Services Agency (FSA) for operating without a license since it established its offices in Japan in late 2017. Consequently, last Friday a warning was issued to the exchange bureau for expanding its operations without the permission of the regulator.

According to official reports, Binance had been asked to halt its operations beforehand, otherwise charges would be filed against him that would jeopardize his continuity as a company. However, the exchange ignored it. Their justification is that they were working to obtain a license from the Japanese FSA. In this regard, Aaron Wang, Binance's Technical Support Officer, reported that they received the first warning and are evaluating their position on the issue.

For some time now, the FSA has been sanctioning a number of exchange bureaus that operate without its authorization in order to prevent irregularities and money laundering that can be generated and compromise the safety of clients. In this regard, many exchanges have already received suspensions of their services for a period of time, as was the case with BitStation and FSHO. Others, however, have been ordered to improve their services.

For the FSA, Binance does not have effective measures in place to prevent some situations that harm investors because it handles a large amount of anonymously traded virtual currencies.

Despite the fact that the investigation by this authority was about to be carried out, this decision became more tense after an announcement about an alleged hack into Binance in early March 2018.

Binance in Malta

In view of the events, Binance made the decision to move to its operations in Malta and seek legislation that favors cryptocurrencies. This information was disseminated on his official blog and then confirmed by the country's Prime Minister, Joseph Muscat.

On the other hand, the CEO of Binance, Changpeng Zhao, pointed out that this Republic is very progressive in terms of cryptomoney and technology companies, which is why this destination was chosen.

Malta aims to be one of the pioneering countries in the regulation of cryptoactives and blockchain-based businesses. Therefore, Binance hopes to propose an attractive regulatory framework for investors and startups that will lead it to become one of the industrial powers in this blockchain market worldwide. Silvio Schembri, Secretary of the National Parliament, assured that they will become "The Blockchain Island".

Bitcoin affected

The world's most popular cryptocurrency, it fell by 4% in Japanese markets after the Japanese regulator expressed its position on the Binance platform. According to information provided by the Japanese exchange bureau, Coincheck, the price of Bitcoin today was 918,800 yen, equivalent to $8,762 / 7,107 euros.

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