- The cryptocurrency exchange Binance has reported that it is currently in negotiations with two Japanese companies for a strategic partnership.
- It is about the introduction of new trading services of the exchange. Further details are not yet known.
Binance announced today, January 17, in a press release that the exchange is currently in negotiation with Z Corporation, a subsidiary of Yahoo Japan and TaoTao, a cryptocurrency exchange. Binance intends to expand its own range of trading services offered, but no further details are yet known. Binance CEO Changpeng Zhao states:
We are looking forward to our joint efforts with Z Corporation/TaoTao in bringing our services to Japan. Foremost, we want to ensure that we work in full compliance with Japanese laws and regulations where local and global standards function as a key role in establishing sustainable development industry-wide and greater public adoption.
The cooperation is primarily intended to help introduce new services in accordance with local laws, so that users of the Japanese stock exchange can continue to use all functions to the full extent. Binance says:
Through licensing Binance’s cutting-edge technologies, Z Corp and TaoTao will collaborate with the Financial Service Agency to ensure full regulatory compliance in the Japanese market.
Tough regulatory framework in Japan for cryptocurrency exchanges
On 14 January 2020, the Financial Services Agency (FSA) proposed that the leverage limit for trading in crypto-currencies should be reduced from the current 4-fold leverage to 2-fold leverage. Furthermore, the recently adopted drafts of the Payment Services Act and the Financial Instruments and Foreign Exchange Act will come into force.
Some critics note that the laws are very vaguely formulated and that the FSA can interpret these laws as it sees fit. Binance’s new efforts contradict yesterday’s announcement that the exchange will restrict access for residents of Japan. So far, however, trading remains fully functional.
Binance also met with resistance in the United States and was forced to establish the Binance.US exchange in cooperation with BAM Trading Services. Zhao emphasized that Binance always strives to offer all known services in accordance with local laws.
Most recently, Binance had introduced futures trading for various crypto-currencies with a 75-fold leverage and thus greatly expanded its own product range. On 16 January, LINK/USDT future trading with 75 times leverage was launched.
— Binance (@binance) January 16, 2020