Binance's Comeback: Full Crypto Services Launching in Japan
Binance, the world's largest cryptocurrency exchange, is set to make a grand return to the Japanese market by offering comprehensive services to users in the country starting from August. The CEO of Binance, Changpeng Zhao, made the announcement during a conference in Tokyo on Tuesday, signaling the exchange's official re-entry into Japan after acquiring Sakura Exchange BitCoin (SEBC) in an undisclosed deal last November.
The acquisition of SEBC proved to be a significant strategic move for Binance, as it enabled the exchange to gain regulatory compliance under Japan's Financial Services Agency (FSA). This regulatory approval paves the way for Binance to operate legally and confidently in the Japanese market, strengthening its position in the region.
Japan holds immense promise in the emerging Web3 industry, and Binance recognizes the country's potential as a crucial player in driving the continued adoption of cryptocurrencies. The company's spokesperson expressed enthusiasm for the Japanese market, citing it as a key focus area for Binance's growth and expansion.
Earlier, in May, Binance had revealed its plans to discontinue services for Japanese users on its global platform, effective from November 30. The exchange offered existing users the opportunity to migrate to the new local platform, subject to a new identity verification process starting from August 1. The new platform is expected to support up to 30 digital assets for spot trading, offering users a diverse range of investment options.
The journey for Binance in Japan hasn't been without challenges. The Financial Services Agency introduced a registration process for cryptocurrency companies operating in the country in 2017, requiring them to seek regulatory approval. Binance received warnings from the FSA on two occasions, in 2018 and 2021, for operating without the necessary permissions. Despite Binance's claims of leaving Japan, the second warning was issued, creating hurdles for the exchange.
However, in September 2022, Binance signaled its intention to return to Japan and pursue a proper operating license. Discussions with regulators were kept confidential at the time, but the exchange emphasized its commitment to collaborating with regulators and policymakers to ensure consumer protection, foster innovation, and advance the cryptocurrency industry on a global scale.
As the anticipated August launch date approaches, the crypto community awaits Binance's comeback in Japan with excitement. The exchange's adherence to regulatory requirements demonstrates the growing maturity and professionalism within the cryptocurrency space. Binance's successful re-entry into Japan could set a positive precedent for other global exchanges seeking to expand their operations into the Japanese market while complying with local regulations.