Key takeaways:
- The cryptocurrency exchange Binance has started the process of creating a new, fully-licensed subsidiary in Japan.
- SEBC will stop providing its current services by May 31 and relaunch as Binance Japan in the following weeks.
The cryptocurrency exchange Binance has started the process of creating a new, fully-licensed subsidiary in Japan after five years of absence from the market.
On May 26, Binance announced in a notice that it has started the process of creating a new, fully-licensed subsidiary in Japan. It stopped operating in Japan in 2018 after failing to secure a separate license from regional authorities. The action comes after Sakura Exchange Bitcoin (SEBC), a regulated cryptocurrency exchange, was purchased in November 2022.
In accordance with the agreement, SEBC will stop providing its current services by May 31 and relaunch as Binance Japan in the following weeks. Users in the nation who access the exchange’s international platform must register with the new organization. After August 1, 2023, the migration will be accessible, and a new identity verification procedure (KYC) will be included to satisfy local regulations.
Starting in June, any funds that are still on the SEBC exchange will be immediately converted to Japanese yen and remitted to users’ bank accounts, according to a prior announcement by Binance. According to a notice, the exchange will not offer derivative services in Japan. Users from the nation cannot open new derivative accounts on Binance’s international platform.
After June 9, Japanese citizens using the global platform won’t be allowed to expand or establish new options positions. According to the exchange, pending orders will be canceled, and open positions must be liquidated by June 23. The Binance Leveraged Tokens won’t be traded or subscribed to. The business wrote:
“In the future, we plan to continue to enrich our service offerings in Japan and will work closely with regulators to possibly provide derivatives services in a fully compliant manner,”
Japan was one of the first nations to pass legislation governing crypto. The swift recovery of cash in February at FTX Japan, a division of the now-bankrupt crypto exchange FTX, was made possible by local legislation. According to Japanese regulations, cryptocurrency exchanges must keep customer funds distinct from other assets.
The exchange’s approach to extending its worldwide reach has been to purchase locally regulated firms because the regulatory landscape is becoming more constrained. In Singapore in 2021, Malaysia in 2022, and most recently Thailand, Binance took a similar action.
Last week, the Binance Investigations team worked with American law enforcement to block the “illicit revenue generation activities” of four North Korean entities that are now sanctioned. The Office of Foreign Assets Control of the U.S. Treasury and Binance sanctioned several addresses.
