Bitcoin slumps after Binance is said to face regulatory trouble in Japan

Binance has consistently ranked as the world's largest cryptocurrency exchange by volume since late last year

Bitcoin fell after one of the world’s largest cryptocurrency exchanges was said to face a government rebuke for operating without a license in Japan, heightening concern that increased regulatory scrutiny will curb demand for digital assets.

Japan’s Financial Services Agency is planning to tell Binance, the trading venue founded by Zhao Changpeng, to stop operating in the country without official approval, a person familiar with the matter said. Binance has several staff in Japan and has been expanding without receiving permission, the person said.

Bitcoin erased gains after Nikkei first reported the FSA’s plans, and the cryptocurrency was trading 2.2 percent lower