Binance under warning of the SFA

Japan’s main financial regulator has issued a warning to the Binance cryptocurrency exchange.

In a statement released Friday by the Financial Services Agency, the agency confirmed Thursday’s news that suggested Binance was about to be warned by the financial watchdog given his lack of registration with the regulator.

However, the statement does not imply whether the regulator is weighing criminal charges, as indicated in Nikkei’s previous report. The exchange told Bloomberg earlier this year that it was working with Japanese regulators to obtain a license.

Responding to the FSA statement, Zhao Changpeng, CEO of Binance, confirmed the receipt of the warning letter and stated that the legal team of the company is in dialogue with the agency.

Founded in the summer of 2017 and based in Hong Kong, Binance has become one of the largest cryptocurrency exchanges in the world by volume of trade in the last six months. According to Alexa data, the company currently sees approximately 9 percent of its traffic visit from Japan.

The FSA has warned other foreign companies about offering services to Japanese citizens in the past.

As CoinDesk previously reported, the agency issued multiple warnings last month to a Macau-based cryptocurrency firm that provided bitcoin purchases and initial coin-offering services to Japanese investors. The company withdrew from the country after the warnings.