Binance, Exchanges

What Is Binance Being Investigated For?

Binance, the world’s largest cryptocurrency exchange by trading volume, is being investigated by Japanese authorities. The Tokyo Metropolitan Police Department (MPD) has reportedly been investigating the platform since March 2018, for possible violations of the country’s Banking Act.

The MPD is said to be looking into whether Binance violated the act by operating without a proper license. Binance has not been registered with the Japanese Financial Services Agency (FSA), which regulates cryptocurrency exchanges in the country.

Binance has been aggressively expanding its operations in recent months, and its CEO Changpeng Zhao has said that the platform is looking to set up shop in every jurisdiction where it is welcomed. However, it appears that Binance may have jumped the gun in Japan, where it is now facing heat from authorities.

NOTE: This is a warning to all users of Binance:

Binance is currently being investigated for potential violations of US securities laws and regulations. As a result, US citizens may be restricted from using Binance services. Furthermore, Binance may be subject to other investigations, including but not limited to investigations by foreign governments and regulatory agencies.

We strongly advise all users to review their use of Binance’s services and ensure that they are compliant with all applicable laws and regulations. Any users found in violation of the law may be subject to criminal prosecution or civil penalties.

The MPD’s investigation is still ongoing, and it remains to be seen if any action will be taken against Binance. However, this is not the first time that the exchange has come under scrutiny from Japanese regulators.

In March 2018, the FSA issued a warning to Binance for operating in Japan without a proper license. The regulator told the exchange to stop operating in the country or face legal action.

Binance eventually stopped serving Japanese customers and moved its operations overseas. However, it appears that the exchange may have resumed serving Japanese customers without registering with the FSA, which could lead to further problems down the road.

The MPD’s investigation into Binance is ongoing, and it remains to be seen what will come of it. However, this is not the first time that the exchange has come under scrutiny from Japanese authorities.

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