Binance, Exchanges

Why Is Binance Getting Shut Down?

Binance, one of the world’s largest cryptocurrency exchanges by trading volume, is getting shut down. The popular exchange announced today that it will be “winding down” its operations in Japan.

This is not the first time Binance has had to shutter its doors in a country. The Malta-based company was forced to leave China in 2017 and later Taiwan.

But this time, the situation is different.

Binance is not being pushed out of Japan by regulators. The exchange is voluntarily shutting down its Japanese operations after failing to gain a license from the country’s financial regulator, the Financial Services Agency (FSA).

Binance first entered the Japanese market in early 2018 through a partnership with a licensed Japanese forex broker. This allowed Binance to operate in the country without having to obtain a cryptocurrency exchange license from the FSA.

NOTE: WARNING: Binance has recently been shut down due to a suspected breach in security protocols. As a result, any funds stored on the exchange are currently inaccessible and could be at risk of theft or loss. Users are advised to transfer any funds stored on Binance to an external wallet as soon as possible and to exercise caution when using any cryptocurrency exchanges.

But that arrangement came to an end in March of this year when the FSA issued a warning to Binance that it needed to obtain a license or face penalties. Binance then stopped operating in Japan.

The FSA’s requirements for cryptocurrency exchanges are designed to protect investors and prevent money laundering. Binance has been unwilling to comply with these rules, which likely played a role in its decision to leave Japan.

Binance is not the only cryptocurrency exchange to pull out of Japan. In September of last year, another major exchange, Kraken, also announced that it was leaving the country due to “regulatory difficulties.”

It’s unclear what regulatory difficulties Kraken was facing, but it’s likely that they were similar to those faced by Binance. The FSA’s rules are designed to protect investors and prevent money laundering, both of which are legitimate concerns when it comes to cryptocurrency exchanges.

By failing to comply with these rules, Binance is putting itself at risk of being shut down by regulators in other countries where it operates. So far, Binance has been able to avoid this fate by moving its operations out of countries where it faces regulatory hurdles.

But it remains to be seen how long this can continue.

5 Related Question Answers Found

Why Is My Binance Account Banned?

If you are a Binance user, you may have noticed that your account has been banned. This is because Binance has recently implemented a new policy that bans accounts that are inactive for more than two years. While this may seem like a harsh policy, it is actually in line with other exchanges who have similar policies.

Why Has Binance Stopped Withdrawals?

Binance, one of the world’s largest cryptocurrency exchanges by trading volume, has stopped all withdrawals amid what it says is a “large scale” security breach. The hack appears to have been carried out through a sophisticated phishing attack. Binance says it detected “a large scale security breach” on May 7th at 02:00:00 UTC (May 6th at 10:00 PM EDT).

Why Is Binance Illegal?

Binance, the world’s largest cryptocurrency exchange by trading volume, is illegal. The company is not licensed to operate in the United States or any other country. The company’s CEO, Changpeng Zhao, has a history of fraud and deception.

Why Does My Binance Withdrawal Keep Failing?

There are a few reasons why your Binance withdrawal may keep failing. The most common reason is that the withdrawal address is incorrect. Make sure that you are entering the correct withdrawal address for the asset you are trying to withdraw.

Why Is Binance Not Working?

Binance, the world’s largest cryptocurrency exchange by trading volume, is not working. The website is down and users are reporting that they are unable to log in or trade. Binance has been down for over an hour now, and there is no word on when it will be back up.
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