In the latest news, Binance exchange was rumored to receive a warning from Japan’s FSA. According to the article, Binance was operating in Japan without a proper license and the FSA considered this a threat to Japanese investors.
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.
— CZ Binance (@cz_binance) March 22, 2018
Apparently, Nikkei’s information was not actually true and all what they did was spreading FUD against the cryptocurrency community. A few weeks ago when Binance was doing an upgrade on their services – there was a rumor spreading over Twitter regarding a possible hack to Binance platform. This story went viral too, as well-know crypto enthusiast John McAfee tweeted a photoshoped printscreen with a Binance announcement that they got hacked.
There was also a small issue a few days ago, when a group of hackers managed to gain access to a few Binance users accounts using a phishing website. The hackers created API keys on users behalf to programatically sell all the cryptocurrencies the user had and increase the value of VIA cryptocurrency, reaching a record of 0.025 BTC in value. Binance solved that issue in a matter of hours with all the funds refunded to the users. Afterwards, they launched a Hacker Bounty.
What we have learned is that Binance is here to stay. They do their job in a professional way and they’re probably prepared for any scenario.
‘FUD’ News In The Cryptocurrency World
This is not the first time that these sort of things happen. News like these are invented to create FUD – Fear, uncertainty and doubt – and bring the prices down. If you search over the past 3 months, you’ll notice a lot of similar news. Established news websites are posting articles meant to diminish the Bitcoin or other cryptocurrency price for various reasons. One of this might be to accumulate a certain amount in cryptocurrency so they could push the price higher trough writing positive articles. Another one is to scare away the new investors from the cryptocurrency market and redirect them to traditional stock markets.
The market is going trough hard times. Certain people are creating FUD news for their own benefits. Always double-check an article and investigate if the news are accurate. If you’re in doubt, wait for clarifications.
UPDATE: It appears that Binance received a letter from JFSA today. What’s interesting to know is how this information reached Nikkei before Binance.