Binance Launches New Platform in Japan, Expanding Its Global Reach

Crypto exchange Binance is set to reenter Japan after acquiring the regulated crypto exchange platform Sakura Exchange Bitcoin (SEBC). Binance acquired the exchange — a Japan Financial Services Agency-licensed business — in November 2022, intending to reenter the Japanese crypto market.

#Binance has acquired 100% of Sakura Exchange BitCoin (SEBC), the Japanese-registered crypto exchange service provider.https://t.co/GSPYxQvamg

— Binance (@binance) November 30, 2022

SEBC has announced the discontinuation of its existing exchange and brokerage services, effective May 31. Following this, the exchange will resume its operations as Binance Japan. However, users based in Japan will be required to register on the new platform, where a fresh identity verification process will be implemented.

Binance’s Regulatory Expansion Strategy

In order to expand its global presence amidst a more stringent regulatory environment, Binance has decided to acquire locally-regulated companies. Binance’s entry into the Japanese market marks a significant milestone following its successful ventures in Singapore, Malaysia, and Thailand.

In 2018, Binance had to halt its operations in Japan as it did not secure an independent license, following regulatory pressure from local authorities. According to a notice on its website, Binance Japan will not offer derivative services. Consequently, Binance’s global version will not accept new derivative accounts from users in Japan.

Additionally, From June 9, the authorities will prohibit Japanese citizens using the global platform from expanding or establishing new options positions. The exchange has informed users that they will cancel pending orders and must close existing positions before June 23. The suspension of trading for Binance Leveraged Tokens will also take place.

While Binance Japan’s immediate focus is on providing compliant services, the company expressed its intentions to collaborate closely with regulators to offer derivatives services in the future potentially. As Binance looks ahead, it plans to enrich its service offerings in Japan further.

Japan is prominent in the crypto industry, having been among the first nations to introduce comprehensive regulations.  The country’s regulatory framework played a pivotal role in the speedy recovery of funds. This occurred at FTX Japan, a now-defunct crypto exchange FTX subsidiary.

Japan’s regulations require crypto exchanges to segregate client funds from other assets. This measure enhances the security and protection of users’ investments.

Binance’s foray into the Japanese market signifies a significant milestone in its global expansion strategy. Binance aims to provide secure and compliant crypto services to Japanese users by establishing a regulated subsidiary and complying with local requirements.

The business will continue to collaborate closely with authorities as it develops. There is a possibility that it may provide derivative services in the future. With Japan’s robust regulatory environment, users can have increased confidence in the security of their funds. This is due to the country’s stringent regulations.