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Binance announced on Friday that it will begin operations in the Japanese market, having acquired regulated crypto exchange Sakura Exchange BitCoin (SEBC) last year.
Existing services on SEBC will be discontinued on May 31, with a new service provisionally named "Binance Japan" launching after June 2023, according to the notice.
At present, SEBC supports 11 trading pairs, but to list tokens on Japanese exchanges, they must be vetted by the Japan Virtual Currency Exchange Association.
Japan has stringent regulatory requirements for crypto exchanges, including the segregation of customer and exchange assets, the majority of exchange assets being kept in cold wallets, and customers' fiat being held by a Japanese trust company or bank trust.
Binance's entry into the Japanese market follows warnings from Japan's financial authorities that the exchange was operating in the country without permission. However, the move indicates that Binance is willing to comply with Japan's regulatory framework.
Japan has become a major player in the crypto space in recent years, and its regulatory framework is among the most stringent in the world. After the controversial hack of major Japanese crypto exchange Coincheck in 2018, Japan's Financial Services Agency (FSA) tightened its regulations for crypto exchanges and has since been working to improve the industry's security and transparency.
Binance's acquisition of SEBC last year was reportedly a strategic move to strengthen its presence in the Japanese market. However, the exchange will face challenges in navigating Japan's complex regulatory landscape.
