Binance Set to Re-Enter Japanese Market with Fully Compliant Subsidiary
Acquisition of Sakura Exchange Bitcoin Paves the Way for Binance Japan's Revival
Mon, 29 May 2023, 04:17 am UTC
After half a decade of absence, the cryptocurrency trading platform Binance is on the path to re-enter the Japanese financial sphere by establishing a fully compliant subsidiary. This new development follows the procurement of the licensed crypto exchange Sakura Exchange Bitcoin (SEBC), a well-established Japanese crypto player, in late 2022.
The agreement implies that the services of SEBC will come to a halt on May 31, paving the way for the rebirth of Binance as Binance Japan in the subsequent weeks. Users in Japan who utilize Binance's international platform must register with the newly founded entity. This transition is expected to be accessible from August 1, 2023, and will entail a revised identity confirmation procedure to adhere to domestic regulations.
All remaining capital within the SEBC platform will be seamlessly converted into Japanese yen and moved to users' banking accounts as the calendar flips to June, as previously revealed by Binance.
Navigating the increasingly stringent regulatory waters, Binance has adopted a global expansion strategy by purchasing locally regulated crypto entities. This tactic was implemented in Singapore in 2021, Malaysia in 2022, and Thailand more recently. The company discontinued its operations in Japan in 2018 due to the inability to secure an independent operating license from local authorities.
Binance has announced on its website that derivative services will not be part of its offerings in Japan. Furthermore, its international platform will not entertain requests for new derivative accounts from Japanese users.
Japanese residents engaging with the international platform will be barred from expanding or initiating new options positions after June 9. Outstanding orders will be nullified, and existing positions must be liquidated before June 23, as stated by Binance. The platform's leveraged tokens will be off-limits for trade or subscription.
Japan, a pioneer in establishing crypto regulations, has created an environment that facilitated a swift recovery of funds at FTX Japan, an offshoot of the now-insolvent FTX crypto exchange, in February. The country's laws mandate that cryptocurrency exchanges keep their clients' assets separate from other capital.
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