Binance, one of the world’s largest cryptocurrency exchanges, is preparing to re-enter the Japanese market after acquiring the regulated crypto exchange platform Sakura Exchange Bitcoin (SEBC).
The SEBC, which is licensed by the Japan Financial Services Agency, will cease its current operations by May 31 and reopen as Binance Japan in June 2023. However, the official launch date is yet to be announced.
Users of the SEBC exchange are required to withdraw their funds before May 28, after which any remaining funds will be converted to Japanese yen and transferred to users’ bank accounts by June 5. The users of Binance Japan will need to undergo new identity verification and Know Your Customer checks to use the platform.
Binance’s reentry into Japan comes after its initial attempt to obtain an independent license failed in 2018. The exchange was forced to close its Japan operations after financial regulators warned it was operating without regulatory clearance from the authorities. Since then, Binance has managed to repair its relations with regulators in many countries by acquiring stakes in regulated entities.
For example, Binance re-entered the Malaysian crypto market by acquiring a stake in a regulated exchange platform. The exchange also obtained an 18% stake in a regulated stock exchange to re-enter the Singapore market. In the United Kingdom, the crypto platform partnered with Paysafe to access the sterling payment network despite regulators declining direct access.
Japan is one of the first countries to introduce crypto regulations, and the country’s regulatory requirements were previously considered strict. However, the government has since eased regulations for crypto platforms, making it easier to list new crypto tokens. With the re-entry of Binance, the Japanese crypto market will have access to one of the largest and most established crypto exchanges in the world.
In conclusion, Binance’s re-entry into the Japanese market after acquiring SEBC is a significant development for the cryptocurrency industry. The move demonstrates Binance’s commitment to complying with regulatory requirements and expanding its reach into new markets. Furthermore, the ease of regulatory demands for crypto platforms in Japan suggests that the global regulatory landscape for cryptocurrencies may be evolving.
