Binance decided to make a comeback in the Japanese crypto market after it acquired Sakura Exchange Bitcoin (SEBC), a regulated crypto exchange platform licensed by the Japan Financial Services Agency in November 2022.
On Friday, a notice was published stating that Binance is preparing to commence operations in the Japanese market in June 2023. The notice says that SEBC’s current services will end on May 31, and a new service called “Binance Japan” will be launched in June 2023.
No official launch date was announced in the SEBC notice. However, Binance Japan has been granted registration as a crypto exchange by the Japan Financial Services Agency (JFSA).
At present, SEBC supports only 11 trading pairs because, in Japan, the process of listing tokens on exchanges requires extreme scrutiny by the Japan Virtual Currency Exchange Association.
SEBC Crypto Exchange Users Must Withdraw Funds Before Deadline
SEBC exchange users must withdraw their funds before May 28, which is the given deadline. If any funds remain in the account after the deadline, they will be converted to Japanese yen at the prevailing conversion rate as of June and refunded to the user’s registered bank account. Binance Japan users will have to undergo new identity verification and Know Your Customer checks.
Related Reading: Binance Sets Foot In Japan With SEBC Acquisition Deal
In order to use Binance Japan, customers are required to go through a separate application process, even if they already have an account with Sakura Exchange Bitcoin. This means that customers need to submit all necessary information for account opening and undergo reviews and identity verification again.
The account opening information for Sakura Exchange Bitcoin is not transferred over to Binance Japan. This is important to ensure that all customers meet the necessary regulatory requirements for operating in Japan.
Binance says it is committed to complying with local regulations in Japan and providing improved services to its users. By doing so, Japan might take a leading role in the world of cryptocurrencies and contribute to creating a responsible global environment for digital assets.
Binance Re-enters Japan After A 5-Year-Long Hiatus
Binance’s return to the Japanese market is happening through an acquired entity, nearly five years after its initial attempt to secure an independent license failed. In 2018, Binance had to shut down its operations in Japan because it was found to be operating without proper regulatory clearance from financial authorities.
Not just Japan, Binance successfully reentered the Malaysian crypto market by acquiring a stake in the regulated MX Global platform. MX Global is one of the four Recognized Market Operators – Digital Asset Exchange licensed by the Securities Commission (SC) in Malaysia.
Additionally, the exchange was able to establish a presence in the Singapore market through an 18% stake in HG Exchange, a regulated stock exchange.
The efforts of Prime Minister Fumio Kishida to strengthen Japan’s economy have made Japan loosen crypto regulations. The Japan Virtual and Crypto Assets Exchange Association (JVCEA) has played a key role in this process, making it easier for foreign companies and crypto exchanges like Binance to enter the Japanese market.
One of the key changes is the easing of the listing of virtual coins, allowing for a wider range of digital assets to be traded. Japan is among the earliest countries to introduce regulations for the cryptocurrency industry.
Featured Image From UnSplash, Chart From TradingView.com