According to a recent article and a tweet published by Chinese crypto blogger Colin Wu, the second largest offshore cryptocurrency trading venue OKX intends to stop providing services to its customers in Japan.
OKX and Binance leaving Japan
Per the source, the text displayed on the OKX mobile app says that the products of the company are not available anymore in Japan because of local regulatory rules and laws. Colin Wu believes that this step by the crypto trading platform may be caused by the pressure put on OKX by the local financial regulator, which deals with crypto – the FSA (Financial Services Agency).
Wu reminded followers that prior to OKX, Binance announced its withdrawal from the Japanese market. Similarly, Binance announced that it is quitting the Netherlands and a few other countries where local traders and investors had been previously able to operate on this major global trading platform.
The developer of the XRPL-based XUMM wallet Wietse Wind stated that he believes that Binance is not willing to comply with the local regulatory rules, therefore, it is leaving the Netherlands. A few weeks ago, the U.S. SEC slammed two major exchanges – Binance and Coinbase – with a lawsuit, claiming that these platforms have violated U.S. security laws.
Head of Binance CZ claimed on Twitter that Binance has always been compliant and spends a lot of time and resources cooperating with regulators and implementing rules they require to be implemented. In particular, Binance was one of the first exchanges to introduce KYC (know your customer) and other anti-money laundering rules required by regulators around the world.
Recent crypto industry developments in Japan
Last week, U.Today reported that the largest bank in the country, Mitsubishi UFJ Financial Group Inc (MUFG), is currently negotiating with emitters of popular stablecoins, offering to issue them on its own blockchain platform, Progmat.
The source of the news did not specify which stablecoins were meant here exactly; however, it was stated that they are based on various global fiat currencies, including USD. These negotiations of MUFG started after June 1, when the Japanese government passed a law that legalized the issuance of digital assets by banks and money transfer companies licensed by Japanese regulators.