Binance to launch a new, regulatory-compliant platform for Japanese users
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Binance, the world’s largest exchange by trading volume, apparently has a plan to return to Japan after being absent for about five years now.
The exchange has started a process of creating a new subsidiary, presumably Binance. Japan, like it did with the US and several other countries so far.
#Binance will launch a new #Crypto exchange for Japan🇯🇵 Residents.
Expected to Launch this Summer 🤯
— TheWignus (@TheWignus) May 29, 2023
This new subsidiary would be fully regulated and compliant with Japan’s strict laws, unlike Binance’s main platform, which was forced to leave the Japanese market to avoid changing its business model.
The move comes after the acquisition of another regulated crypto exchange called Sakura Exchange Bitcoin (SEBC), which Binance purchased in November 2022.
As part of the deal, SEBC is supposed to fully cease its current activities by the end of May 2023. After that, it will reopen as Binance.Japan in a few weeks.
The exchange’s users would have to register with the new entity, and the migration will be possible after August 1st of this year. Users will have to go through a new identity verification process in order to comply with local regulations.
As for the funds that remain on SEBC, the platform will convert them to Japanese yen automatically and return them to its’ users’ bank accounts in early June, according to Binance.
Binance continues its expansion to crypto-friendly markets in Asia
The process of reopening SEBC as Binance.Japan is expected to go smoothly since this is far from being the first time the world’s largest exchange has done something like this.
In fact, acquiring locally regulated entities and rebranding them has been Binance’s main expansion strategy.
It already did this in Singapore in 2021, as well as in Malaysia in 2022. Most recently, it did the same in Thailand.
Now, the exchange is continuing its conquest of Asian markets by going to Japan, where it previously operated up to 2018, when it had to shut down operations.
At the time, Binance needed to obtain an independent license from the local regulators. However, since Japan is rather strict about which cryptocurrencies are allowed to be on offer, as well as on a number of other aspects, the exchange decided to leave the market.
Its notice involving the return to Japan says that it will not offer derivative services in Japan.
Binance’s global version also won’t accept Japanese users who might be looking for derivative services. In fact, Binance’s main global platform will be closing access to Japan’s traders, who will not be able to increase or open new options positions after June 9th.
According to the company’s statement, Binance International will cease providing services to residents of Japan on November 30, 2023, but customers will have the option to migrate to the local service, Binance Japan.
All pending orders will be canceled, while the existing positions must be closed until June 23rd. The platform wants to redirect all of its Japanese users to the new subsidiary.
“In the future, we plan to continue to enrich our service offerings in Japan and will work closely with regulators to possibly provide derivatives services in a fully compliant manner.”
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