Binance, the world’s largest cryptocurrency exchange by trading volume, has acquired the 100% of Sakura Exchange BitCoin (SEBC), a Japanese-registered cryptocurrency exchange service provider, according to the Binance blog post.
— Binance (@binance) November 30, 2022
The exchange, licensed by the Japan Financial Services Agency9JFSA), was acquired in November 2022, with Binance intending to relaunch it as Binance Japan in June 2023.
SEBC has declared that it would discontinue its current exchange and brokerage services on May 31. The exchange will reopen under the name Binance Japan after that date.
The officials have not announced the launch date. Users of SEBC must withdraw their funds before the May 28 deadline, with any remaining funds automatically converted to Japanese yen and transferred to users’ bank accounts by June 5.
Hitomi Yamamoto, CEO of SEBC, said:
We are honored and delighted to make this announcement with Binance, one of the world’s leading crypto asset exchange service providers.
Yamamoto also said, On top of our effort to prioritize user protection, Binance’s strong compliance system will contribute to building a more compliant atmosphere for users in Japan and help them access key crypto services needed for mass adoption in the future.
The exchange failed to secure an independent license in Japan five years ago. This failure resulted in the company’s withdrawal from the country in 2018.
Furthermore, by acquiring regulated entities, the exchange has successfully re-entered markets where it previously had difficulty obtaining independent licenses.
Binance prioritizes the Japanese market since it was one of the first to enact crypto rules. Although the regulatory requirements were initially strict, the country has since eased them. This has made it easier for cryptocurrency exchanges to list new tokens.
However, concerns about Binance’s regulatory compliance have an adverse impact on the company’s operations in several countries. The exchange has been able to mend its ties with authorities in several of these nations.
Binance collaborated with payment networks in addition to purchasing stakes in regulated companies to re-enter regions where it has encountered regulatory barriers.
Binance’s Strategy of Acquisitions & Partnerships
Binance’s expansion strategy relies heavily on acquiring stakes in regulated entities and partnerships with payment networks. By doing so, Binance has re-entered markets where it has previously struggled to obtain independent licenses.
Before acquiring SEBC, Binance re-entered the Malaysian crypto market by acquiring a stake in a regulated exchange platform. Similarly, the exchange gained an 18% stake in a regulated stock exchange to re-enter Singapore.
Binance also gained access to the UK’s sterling payment network through a partnership with Paysafe, despite regulators denying it access.
While Binance has faced regulatory compliance issues, its acquisition and partnership strategy has allowed it to continue expanding into new markets.
The crypto market’s growth will likely drive Binance’s expansion strategy, depending on its skill in navigating regulatory hurdles. Additionally, Binance aims to access new markets through partnerships and acquisitions.
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