Japanese financial authorities set to issue warning to Binance

Criminal charges could follow, as Japan’s Financial Services Agency prepaes to tell the world’s biggest crypto exchange to get a license or cease trading in the country.

Binance, a Hong Kong-based company, has risen quickly through the ranks of crypto exchanges to become the biggest player in the market over the last year. That has attracted the interest of several groups of bad actors, and has now caught the eye of financial lawmakers in Japan – the world’s most cryptocurrency friendly country.

According to the Nikkei Asian Review, Binance has been trading in Japan without a license, and now regulators want the exchange to conform to its rules or cease doing business there. Indeed, initial reports say that the Japanese FSA plans to work with the police to file criminal charges if it doesn’t comply.

It has apparently upset authorities there by not properly conforming to its anti-money laundering protocols. Specifically, they believe it has failed to verify the identities of its Japanese customers when accounts are opened.

Binance has, the report says, picked up a lot of trade from Japan recently, due to its relatively cheap fees.

The Nikkei scoop can be read, here. We’ll have more if and when this becomes official.