Binance Japan to launch operations in August
Binance’s sprawling empire is about to get bigger as the world’s largest crypto exchange by traded volume is set to launch its operations in Japan in August. The founder of the exchange, Changpeng Zhao, officially confirmed the news during a conference held in Tokyo.
As per a notice on its website, the new compliant platform will not offer derivative trading and so called “leveraged token” for its customers in Japan. However, Binance aims to work hand in hand with regulatory authorities to meet the necessary requirements and offer derivatives services in a manner that aligns with regulatory standards.
Binance’s global version will no longer accept new derivative accounts from users in Japan. Local residents who are using the global platform will not be able to open or increase options positions and any pending orders will be canceled.
Furthermore, as part of the transition process, Binance will gradually limit the functionality of the global exchange for Japanese users leading up to December 1. After this date, Japanese users who have not completed their Know Your Customer (KYC) verification will only be able to withdraw their assets from the global platform.
Binance made a fresh bid to enter Japan back in November 2022 with the acquisition of Japanese-registered crypto exchange service provider Sakura Exchange BitCoin (SEBC). The financial terms of the transaction were not disclosed.
SEBC is among a total of thirty-one crypto exchanges registered in the country with the Financial Services Agency (FSA). The exchange terminated all services on its platform and launched a new service under the name “Binance Japan”. The firm intends to release more information regarding the launch in the near future.
Binance pulled out of Japan in 2018 after the country’s financial regulator warned that the crypto giant is operating in Japan without permission. At the time, CEO Changpeng Zhao spoke out against rumors that Binance was subject to criminal charges by the FSA. He also claimed that the exchange was in “constructive dialogues” with the regulator over the matter.
A Binance spokesperson cited Japanese Prime Minister Fumio Kishida’s Web3-friendly approach. The PM said in May that Web3-related initiatives such as metaverse and non-fungible token (NFT)-related developments will be part of the nation’s growth strategy going forward.
Since 2017, Japan has been one of the first nations in the world to make it mandatory for crypto companies to properly register with the regulator in order to continue operating. However, Japanese authorities are proposing new restrictions that would bring crypto exchanges under the purview of its Foreign Exchange and Foreign Trade Act.
