Japan-based leading virtual asset trading platform named ‘Tao Tao’ ended negotiations with Binance exchange, setting back the timeline for the cryptocurrency exchange to launch trading services for users within the Asian country.
According to a recent official update from Tao Tao, the platform revealed that it had “decided to finish negotiations” with Binance after 9 months. Binance had been working on a collaboration with the virtual asset trading platform along with the Z Holdings’ daughter company Z Corporation – formerly Yahoo Japan – since 17th Jan. as a part of its goal to enter the Japanese market. The digital asset trading platform is currently licensed by the country’s FSA [Financial Services Agency], while on the other hand, Binance isn’t.
Tao Tao didn’t offer specific details regarding how the negotiation had ended, but a spokesperson revealed that the platform “could not agree on a strategy” with the Binance exchange.
The exchange revealed earlier in January that it might be restricting access to residents of Japan at an unknown date, purportedly in response to an increasing number of regulations within the country. Binance exchange was earlier headquartered within Japan after leaving China earlier in 2017 but stayed less than a year prior to relocating its offices to Malta.
This move followed Japanese regulators at the FSA issuing a warning to the exchange earlier in 2018 for operating without a license. Additionally, amendments to cryptocurrency regulations via Japan’s Payment Services Act & Financial Instruments and Exchange Act were scheduled to come into effect starting from Q2 this year.