Binance launches the switch to the new platform in Japan.
The action comes after Sakura Exchange Bitcoin, a licensed cryptocurrency exchange, was purchased in November 2022.
The cryptocurrency exchange Binance has started the process of creating a new, fully-licensed subsidiary in Japan after spending five years absent from the market. 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 present 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. The migration will be accessible starting on August 1, 2023, and it will come with a new identification verification procedure to satisfy regional specifications.
Beginning in June, any money that are still on the SEBC exchange will be immediately converted to Japanese yen and remitted to customers' bank accounts.
The exchange's approach for extending its worldwide reach has been to purchase locally-regulated firms due to a shrinking regulatory landscape. Similar moves were made by Binance in Malaysia in 2022, Singapore in 2021, and Thailand most recently. It stopped operating in Japan in 2018 after failing to secure a separate license from regional authorities.
A note on the exchange's website states that it 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 cancelled by June 23. The Binance Leveraged Tokens won't be traded or subscribed to.
“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,” the company wrote.
One of the first countries to enact crypto legislation was Japan. 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. Regulations in Japan demand that cryptocurrency exchanges keep client funds distinct from other assets.