Regulators in UK, Japan, and Ontario Issue a Warning to Binance

Kavya  |  Jun 28, 2021

Top financial regulators in the UK and Japan have issued a warning to Binance for providing cryptocurrency exchange services to citizens of the two countries without being registered with the agencies as required by law.

While, Binance aims to cease operations on December 31, 2021, in response to Ontario's crypto exchange crackdown.

Japan Issues Warning To Binance

On Friday, Japan's main financial regulator, the Financial Services Agency (FSA), issued a warning letter to Binance Holdings Ltd. and CEO Changpeng Zhao.

According to the notification, Binance has been offering cryptocurrency exchange services to Japanese clients without requiring them to register.

According to Japanese cryptocurrency law, companies that wish to provide cryptocurrency exchange services in Japan must register with the FSA.

This was not Binance's first encounter with an FSA notice. The crypto exchange received a similar warning from the regulators in March of this year.

Bybit Fintech Ltd. and its CEO, Ben Zhou, also received a warning from the FSA in May.

The United Kingdom Issues Regulatory Warning 

The Financial Conduct Authority (FCA), Britain's financial regulator, issued a consumer warning on Binance on Saturday.

According to the FCA, “Binance Markets Limited is not currently authorized to engage in any regulated activity without the FCA's prior written approval... This company is part of a larger corporation (Binance Group)... The Binance Group appears to be selling a variety of products and services to UK clients through its website,”

According to the FCA, "no other entity in the Binance Group possesses any kind of UK authorization, registration, or license to conduct a regulated activity in the UK."

Binance Would Suspend Its Operation In Ontario 

Binance has stated that it would no longer provide services to Ontario residents. However, following the warning from Japanese officials, a notification was made. The company has not responded to a request for comment by the time this story was published. 

Users in Canada and Japan who are concerned about the termination of service in their countries may find solace in the fact that some American users continue trading.

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