Binance Received A Formal Warning From Japanese FSA

  • Binance accused Nikkei of "Irresponsible Journalism" but doesn't deny it
  • Binance to open "Fiat-To-Crypto Exchange" in Malta

The Financial Services Agency (FSA), Japan’s financial watchdog, issued an official warning to the world's largest cryptocurrency exchange by trading volume - Binance, for operating in the country without a license.

In a statement released on the regulator's website, the Hong Kong-based cryptocurrency exchange has been asked to discontinue its service to Japanese residents.  The news negatively reflected on the Bitcoin price, as it experienced a drop of around 4% in its value.

Binance Accused Nikkei Of "Irresponsible Journalism"

Nikkei, a Japanese newspaper, first reported about FSA’s warning to Binance. In its report, it stated that the financial regulator is planning to file criminal charges against Binance unless it plans to stop its operation in the country. However, CEO of Binance Zhao Changpeng reaffirmed its customers via a tweet that the company is in “active dialog” with the Japanese regulator. At the same time, Changpeng blasted Nikkei for its “irresponsible journalism”

Changpeng tweeted:

“Nikkei showed irresponsible journalism. We are in constructive dialogs with Japan FSA, and have not received any mandates. It does not make sense for JFSA to tell a newspaper before telling us, while we have an active dialog going on with them.”

Zhao Changpeng Binance CEO

Later, Changpeng confirmed on Twitter, that the company received the warning letter the day after Nikkei’s report. He tweeted

However, for now, the matter seems to have reached no conclusion and it is unknown whether Binance has halted its operations or still continuing work.  

Binance to Open "Fiat-To-Crypto Exchange" in Malta

Over the past months, Binance has been scouting for a crypto friendly location to station its headquarters. Binance recently announced it will set up a branch office in the Southern-European island country - Malta. The crypto exchange giant plans to launch its first “fiat-to-crypto exchange” exchange.

The Maltese Prime Minister welcomed Binance via a tweet:

For now, it is unclear if Binance will continue to process to acquire the license to operate in Japan, and will the FSA accept it. Until then the chances that the country will be host to Binance’s headquarters are slim to none.

$3.1 million: Crypto Exchange Cashaa Hacked for 336 BTC

London-based cryptocurrency exchange Cashaa revealed it lost 336 bitcoin, at press time worth $3.1 million, to hackers who managed to access one of its cryptocurrency wallets.

According to a tweet the exchange published on July 11, the attackers managed to access one of its Blockchain.com wallets, and quickly transferred the funds to an address they control. From the address they went to the BTC has been through a series of hops, suggesting the use of coin mixing software to limit traceability and throw off blockchain sleuths.

Cashaa believes that the attacker may have managed to infect one of its computers with malware, and then waited for an employee to access its machine. As soon as that happened, the funds were moved out of its wallet. Reacting to the security breach, the exchange halted withdrawals and deposits and “called the board meeting to decide whether the company will bear all the losses.”

The exchange suspects the hacker is from east Delhi, India, and filed a report with the Delhi police cybercrimes department.

Cashaa also reached out to other cryptocurrency exchanges and businesses informing them of the address, in a bid to stop the hacker from cashing out. In statements provided to industry media Kumar Gaurav, Cashaa’s CEO, seemingly lashed out at trading platforms that allow hackers to cash out.

Gaurav was quoted as saying:

As of today, hackers are very confident to hack crypto addresses and move it through exchanges that are facilitating such laundering through their systems. Exchanges like these must be shut down and owners of these exchanges should be charged with money laundering facilitation crime.

CryptoCompare’s Exchange Benchmark report, as recently reported, revealed that 38% of crypto exchanges interact with high-risk entities in 25% or more of their transactions. High-risk entities are those associated with darknet markets and vendors, criminals, gambling projects, malware operators, and others.

Featured image by Kevin Ku on Unsplash