Binance to cease services for Japanese users after local launch
Binance is poised to reenter the Japanese market through the launch of a fully compliant subsidiary in the country. This development comes a few months after Binance made a fresh bid to return to the lucrative market in November 2022 with the acquisition of Japanese-registered crypto exchange service provider Sakura Exchange BitCoin (SEBC).
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.
By the end of May, Sakura will conclude its operations and soon thereafter relaunch as Binance Japan. Japanese users will be required to register with the new entity, and starting from August 1, the migration process will commence, incorporating a fresh identity verification procedure to ensure adherence to local regulatory requirements.
Similarly, 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 after June 9 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.
“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 the exchange said.
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.
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.
