Binance, one of the largest crypto exchanges across the world, was looking for an alliance with the Japanese crypto trading platform TaoTao. It was announced recently that negotiations on which both the parties were working to create a crypto trading platform have now ended without any agreement. This means that the partnership is no more and the alliance has been abandoned.
Binance seems to have entered into the discussion with TaoTao and Japan’s Z Corporation in January 2020. The main purpose of holding these discussions and forming the alliance was basically to expand the domestic business of both the firms. Along with this, it was also meant to incorporate the trading technology of the largest crypto exchange that will help to enhance the local crypto market of Japan.
This announcement of ending the partnership was announced by TaoTao on Monday, October 5, 2020. However, it is still not clear why this step has been taken and what is the reason behind the failure of this partnership.
Even though this news of ending the alliance is quite a recent one, it has been seen that Binance has been facing several hardships in the country for a very long time. Back in 2018, the exchange received a warning from Japan’s Financial Services Agency (FSA) which is the financial watchdog of the country. The warning was against the exchange for operating without a license. Last month also, a lawsuit was filed against the exchange by Fisco, a local crypto exchange in Japan. Fisco has suffered a $60 million hack two years ago, in 2018 and it has accused Binance of allowing the stolen funds to be laundered through the exchange. Despite being such a rapidly growing crypto market, the world’s largest exchange is still facing a hard time to expand its market in the region.