Crypto exchange giant, Binance has failed to enter into an agreement with the Japanese digital asset platform, TaoTao for establishing a local joint venture.
Reported by Coindesk on Tuesday, the negotiations between the two companies ended without any agreement, but the reason behind the failure is not known.
Binance started its talks with Z Corporation and its digital currency subsidiary, TaoTao in January this year to establish itself in the Japanese cryptocurrency market, FortuneZ reported earlier.
TaoTao is one of the handfuls of crypto companies in Japan with a regulatory license to legally operate a digital exchange in Japan.
Binance’s Troubles in Japan
Binance is one of the largest global cryptocurrency exchanges with local operations in most of the major markets. However, it was facing hostility in Japan, which is among the top crypto markets in terms of trading volumes.
The exchange received a Financial Services Agency (FSA) warning in 2018 for operating in the country without any license as the local regulator was tightening its grip around the industry following the Coincheck hack.
Despite many speculations at that time, Binance was asked to become compliant with the local regulations.
However, earlier this year Binance officially notified its Japanese users that it will phase out its services and thus will eventually impose restrictions.
Meanwhile, Binance was facing another fresh blow from Japanse cryptocurrency exchange Fisco as it filed a lawsuit against the giant for facilitating money laundering using digital currencies. Formerly known as Zaif, the exchange was hacked in 2018, suffering a loss of around $60 million.