28 May 2023
Cointelegraph
27 May 2023
Binance Kicks Off Transition to New Platform in Japan
After five years out of the Japanese market, crypto exchange Binance has begun the process of establishing a new and fully regulated subsidiary in the country. The move follows the acquisition of the regulated crypto exchange Sakura Exchange Bitcoin (SEBC) in November 2022.
As part of the deal, SEBC will cease its current services by May 31 and reopen as Binance Japan in the coming weeks. Users of the exchange's global platform in the country will have to register with the new entity. The migration will be available after August 1, 2023, and will include a new identity verification process (KYC) to comply with local requirements.
Any remaining funds on the SEBC exchange will be automatically converted to Japanese yen and transferred to users' bank accounts beginning in June, Binance previously disclosed.
With a narrowing regulatory landscape, the exchange's strategy for expanding its global reach has been to acquire local regulated entities. Binance made a similar move in Singapore in 2021, in Malaysia in 2022, and in Thailand most recently. In Japan, it shut down operations in 2018, after failing to obtain an independent license from local regulators.
Related: Japan’s crypto Anti-Money Laundering measures to start in June
According to a notice on its website, the exchange will not provide derivative services in Japan. Binance's global version will not accept new derivative accounts from users in the country.
Additionally, residents in Japan using the global platform will not be able to increase or open new options positions after June 9. Pending orders will be canceled, and existing positions must be closed before June 23, said the exchange. Binance Leveraged Tokens will not be available for trade or subscription.
"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.
Japan was one of the first nations to introduce crypto regulations. The local laws contributed to the speedy recovery of funds in February at FTX Japan, a subsidiary of the now-bankrupted crypto exchange FTX. Japan's regulations requires crypto exchanges to separate client funds from other assets.
Magazine - Crypto City: Guide to Osaka, Japan’s second-biggest city
As part of the deal, SEBC will cease its current services by May 31 and reopen as Binance Japan in the coming weeks. Users of the exchange's global platform in the country will have to register with the new entity. The migration will be available after August 1, 2023, and will include a new identity verification process (KYC) to comply with local requirements.
Any remaining funds on the SEBC exchange will be automatically converted to Japanese yen and transferred to users' bank accounts beginning in June, Binance previously disclosed.
With a narrowing regulatory landscape, the exchange's strategy for expanding its global reach has been to acquire local regulated entities. Binance made a similar move in Singapore in 2021, in Malaysia in 2022, and in Thailand most recently. In Japan, it shut down operations in 2018, after failing to obtain an independent license from local regulators.
Related: Japan’s crypto Anti-Money Laundering measures to start in June
According to a notice on its website, the exchange will not provide derivative services in Japan. Binance's global version will not accept new derivative accounts from users in the country.
Additionally, residents in Japan using the global platform will not be able to increase or open new options positions after June 9. Pending orders will be canceled, and existing positions must be closed before June 23, said the exchange. Binance Leveraged Tokens will not be available for trade or subscription.
"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.
Japan was one of the first nations to introduce crypto regulations. The local laws contributed to the speedy recovery of funds in February at FTX Japan, a subsidiary of the now-bankrupted crypto exchange FTX. Japan's regulations requires crypto exchanges to separate client funds from other assets.
Magazine - Crypto City: Guide to Osaka, Japan’s second-biggest city
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