Legal regulations regarding cryptocurrencies are an important step towards the development of this industry. Thanks to the relevant regulations, exchanges can obtain licenses and conduct their business fully legally. Thanks to this, customers can sleep well because the exchanges are subject to the law of the country in which they received the license. But what if a country’s government tightens the rules?
Binance banned in Japan?
Binance exchange is one of the leaders in the cryptocurrency industry – it provides its services almost all over the world, including in the USA. However, due to more stringent regulations, the United States has received its version of the exchange – Binance.US. Is Japan facing the same fate?
In a statement published on January 15, 2020, Binance announced that it would stop providing services to its Japanese customers. The decision was made after a warning from Japanese regulatory authorities that the stock exchange’s activities did not comply with applicable law. To put it more simply – Binance did not have a Japanese national license to operate a cryptocurrency exchange.
The exact date of limiting access to the exchange is not yet known – at the moment Japanese citizens can freely exchange their cryptocurrencies. However, there is a light in the tunnel – the possibility of creating a new product within the strategic partnership, this time 100% compliant with the regulations.
Binance partnership with Z Corporation Inc.
Just a day after the announcement of bad news for the inhabitants of Japan, another info appeared – this time much more promising. The statement issued on January 16, 2020 said that Binance started a strategic partnership with Z Corporation (Z Corp) – a company associated with the Japanese SoftBank and the TaoTao Inc. exchange. What does it mean?
We observed a similar situation less than 4 months ago when restrictive regulations did not allow Binance to expand the USA. Then Binance.US was created – the American equivalent of the exchange, adapted to the current law, having a license for cryptocurrency activities. It is highly probable that also in this case partnership can mean the creation of a completely new platform – tailor-made and adapted to the regulations.