Japan’s Financial Services Agency issued a warning Friday to major cryptocurrency exchange Binance for operating without registration in the country. Hong Kong-based Binance was operating in Japan through the internet without a license for a virtual currency exchange, according to a Google translation of the Japanese-language statement.

Bitcoin traded 4 percent lower near $8,360 as of 8:53 a.m. ET, according to CoinDesk’s bitcoin price index. Japanese authorities recognized bitcoin as legal tender last April, and require cryptocurrency exchanges to register with the government.

Sixteen exchanges have done so, as of a Japanese Financial Services Agency document dated March 7. Binance CEO Changpeng Zhao confirmed receipt of Financial Service Agency’s letter in a tweet.

“Our lawyers called JFSA immediately, and will find a solution,” he added in the tweet. It was not clear whether Binance was still operating in Japan, and Zhao did not immediately respond to a CNBC request for comment.

Zhao said in a Bloomberg report that the company tried to get a license in Japan, but has decided to remove its staff from its office there. Reuters reported Thursday, citing a source familiar with the matter, that if Binance does not heed the warning, the agency will file a criminal complaint. Read more from cnbc.com…

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