Next month, the cryptocurrency exchange giant Binance will introduce “Binance Japan” by renaming a Japanese exchange it acquired late last year. Binance (AP) Holdings, a partner of Binance, carried out the deal.
At the end of November 2022, Binance acquired shares in the Sakura Exchange BitCoin (SEBC) trading platform. The transaction’s financial details weren’t made public.
Thirty-one cryptocurrency exchanges have been registered in the nation with the Financial Services Agency (FSA), including SEBC. The exchange announced plans to shut down all services on its platform and introduce a brand-new service. More details about the launch will soon be made public by the company.
On May 31, 2023, Sakura Exchange will also stop offering brokerage services for regional exchanges. Before the deadline, the corporation recommended its users cash out all of their crypto assets and withdraw any remaining funds.
“The Japanese market will play a key role in the future of cryptocurrency adoption. As one of the world’s leading economies with a highly-developed tech ecosystem, it’s already poised for strong blockchain uptake. We will actively work with regulators to develop our combined exchange in a compliant way for local users. We are eager to help Japan take a leading role in crypto.” General Manager of Binance Japan Takeshi Chino stated.
When Japan implemented a permit system for cryptocurrency exchanges in 2018, Binance was pulled out of the country. At the time, CEO Changpeng Zhao denied claims that Binance was being investigated by the FSA for possible criminal charges. Additionally, he stated that the exchange had “constructive dialogues” about the issue with the regulator.
However, Japan-based sources started claiming that Binance was looking for a way back into the market in September of last year. Binance and other major trading platforms have previously been advised not to try to reach Japanese consumers before getting a permit. Binance has been able to get around this procedure by purchasing SEBC, a license-holding domestic player.
The Web3-friendly stance of Japanese Prime Minister Fumio Kishida was cited by a Binance representative. The Prime Minister declared in May that future non-fungible token (NFT)-related improvements and Web3-related initiatives like the metaverse will be an integral part of the country’s growth plan.
Since 2017, Japan has been one of the first countries in the world to require proper registration with the government in order for crypto firms to continue operations. However, new regulations that would bring cryptocurrency exchanges under the jurisdiction of its Foreign Exchange and Foreign Trade Act are being proposed by Japanese authorities.
The organization declared that additional Know Your Customer (KYC) protocols would be required of all new clients, including those with SEBC accounts.
