Binance’s Plan to Return to Japan Falls Through The Cracks As Deal With TaoTao Collapses
In a report first made public by Coindesk Japan, Binance exchange’s deal with Japan-based crypto trading exchange, TaoTao, has fallen through. According to the statement, the two companies have called off the strategic alliance that could see Binance services return to the island nation.
The largest global cryptocurrency exchange, Binance, announced in 2019 they will be restricting their services to Japan residents with increased scrutiny from the Financial Service Authority (FSA). In January this year, BEG reported Binance was in a strategic alliance agreement with TaoTao, the crypto exchange wing of Z Corporation. The two latter firms are under Z Holdings, the firm in charge of the Yahoo Japan enterprise.
After nine months of discussions, the deal has been abandoned, however, the statement from TaoTao, released Monday, did not give a clear explanation as to why the deal was abandoned.
Binance announced its restrictions to Japan residents shortly before the discussions with TaoTao began. Trading services to Japan-based clients will continue as normal in the future.
Binance is also facing a possible lawsuit in Japan after the locally-based crypto exchange, Fisco (formerly Zaif), which was hacked in 2018, that claimed over $9 million in crypto stolen was transferred and withdrawn from their platform. Binance has yet to comment on the alleged money laundering claims from Fisco.