After five years out of the Japanese market, cryptocurrency exchange Binance I started The process of setting up a new fully organized subsidiary in the country. The move follows the acquisition of regulated cryptocurrency exchange Sakura Exchange Bitcoin (SEBC) in November 2022.
As part of the deal, SEBC will cease its existing services by May 31 and reopen as Binance Japan in the coming weeks. In-country users of the global exchange will have to register with the new entity. The migration will be available after August 1, 2023, and will include a new identity verification (KYC) process to comply with local requirements.
Any funds left on the SEBC exchange will be automatically converted into Japanese yen and transferred to users’ bank accounts starting in June, Binance previously revealed.
With the regulatory landscape narrowing, the exchange’s strategy for expanding its global reach has been to acquire regulated local entities. Binance made a similar move in Singapore in 2021, in Malaysia in 2022, and in Thailand more recently. In Japan, it shut down operations in 2018, after failing to obtain an independent license from local regulators.
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according As noted on its website, the exchange will not offer derivative services in Japan. Binance Global Edition will not accept new derivative accounts from users in the country.
In addition, residents of Japan who use the global platform will not be able to increase or open new option positions after June 9. Pending orders will be cancelled, and existing positions must be closed before June 23, the exchange said. Binance Leveraged Tokens will not be available for trading or subscription.
“Going forward, we plan to continue to enrich our service offerings in Japan and will work closely with regulators to offer derivative services in a fully compliant manner,” the company wrote.
Japan was one of the first countries to introduce encryption regulations. Local laws contributed to the rapid recovery of funds in February in FTX Japan, a subsidiary of the now bankrupt crypto exchange FTX. Japanese regulations require cryptocurrency exchanges to separate customer funds from other assets.
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