Binance, one of the leading cryptocurrency exchanges, is making its return to the Japanese market by establishing a fully regulated subsidiary in the country.
Binance Prepares Launch of Regulated Subsidiary in Japan
Binance, one of the leading cryptocurrency exchanges, is making its return to the Japanese market by establishing a fully regulated subsidiary in the country. The move comes after Binance acquired Sakura Exchange Bitcoin (SEBC), a regulated crypto exchange, in November 2022. SEBC will cease its services by the end of May and reopen as Binance Japan in the coming weeks. Users in Japan will need to register with the new entity, and the migration process will begin after August 1, 2023, with a new identity verification process to comply with local regulations. Binance’s strategy of expanding its global reach involves acquiring locally-regulated entities, similar to its moves in Singapore, Malaysia, and Thailand. In Japan, Binance had previously exited the market in 2018 due to the lack of an independent license from local regulators.
As part of its compliance efforts, Binance’s Japanese platform will not offer derivative services. Users in Japan will not be able to open or increase options positions after June 9, and pending orders will be canceled, with existing positions needing to be closed before June 23. Binance Leveraged Tokens will also not be available for trade or subscription. However, the company expressed its intention to work closely with regulators to provide derivatives services in a fully compliant manner in the future. Japan, known for its early introduction of crypto regulations, has implemented measures such as the separation of client funds from other assets, which proved beneficial during the recovery of funds at FTX Japan earlier this year.