Binance, the largest cryptocurrency exchange by trading volume, is set to re-enter the Japanese market with full services in August. The return to Japan comes after a two-year absence, during which the exchange received a warning from the country’s Financial Services Agency (FSA) for operating without proper authorization. The re-entry was made possible by Binance’s acquisition of regulated crypto exchange Sakura Exchange BitCoin (SEBC) in November 2022.
Binance’s Plans for Japan
During a conference in Tokyo, Binance CEO Changpeng Zhao, commonly known as CZ, announced the company’s plans to offer comprehensive services for Japanese users in August. This marks a significant milestone for the exchange, as Japan is recognized as having substantial potential in the emerging Web3 industry, and Binance aims to play a key role in the continued adoption of cryptocurrencies in the country.
The Impact of Binance’s Acquisition of SEBC
The acquisition of Sakura Exchange BitCoin (SEBC) enabled Binance to officially re-enter the Japanese market. SEBC was already regulated by Japan’s Financial Services Agency (FSA), ensuring that Binance’s operations in the country will now comply with the necessary regulatory requirements.
As part of the transition, existing services on SEBC were terminated on May 31, and Binance plans to launch the new platform under the provisional name “Binance Japan.” Initially, the platform is expected to offer up to 30 digital assets for spot trading.
Japan as a Leader in the Web3 Regulatory Environment
During the Web3 conference “WebX” held at the Tokyo International Forum, CZ praised Japan for its leadership in the Web3 regulatory environment. He emphasized that Japan’s approach could serve as an example for the rest of the world to follow. With the reentry into the Japanese market, Binance aims to contribute to the country’s further advancements in the cryptocurrency space.
Binance’s Compliance Efforts
Binance’s history with Japanese regulators has been somewhat tumultuous. In 2017, the FSA introduced a registration process for cryptocurrency companies operating in the country, requiring them to file with the regulator. Since then, the FSA issued warnings to Binance in 2018 and 2021 for operating without necessary permissions. Notably, the second warning was given despite Binance’s claims that the exchange had already left Japan.
However, in September 2022, shortly before the acquisition of SEBC, reports surfaced that Binance was seeking a license to operate in Japan and planned to apply for regulatory approval. The exchange expressed its commitment to working with regulators and policymakers to shape policies that protect consumers, encourage innovation, and promote the growth of the cryptocurrency industry globally.
Rival Exchanges’ Departure from Japan
In recent months, rival cryptocurrency exchanges Coinbase (COIN) and Kraken decided to withdraw from the Japanese market. Both exchanges cited “market conditions” as the reason for their departure. This development highlights the challenges and complexities that exchanges face when operating in different regulatory environments.
Conclusion
Binance’s upcoming reentry into the Japanese market is a significant development for the cryptocurrency industry. The acquisition of Sakura Exchange BitCoin (SEBC) has enabled Binance to comply with Japanese regulations, paving the way for the exchange to offer full services in the country. Japan’s regulatory approach to the Web3 industry sets an example for other nations, and Binance’s commitment to working with regulators reflects the exchange’s efforts to foster innovation and growth while ensuring consumer protection. As Binance prepares to launch “Binance Japan” in August, the exchange is positioning itself to play a pivotal role in the continued evolution and adoption of cryptocurrencies in Japan.
