- Binance announces its re-entry into the Japanese market through new subsidiary.
- BNB turns bullish but prevailing demand fails to push it out of July range.
A few months ago, the crypto market was staring down the barrel of regulatory uncertainty. Binance [BNB] was caught in the crosshairs because of its rapid expansion and many countries banned its operations.
Read Binance Coin’s [BNB] price prediction 2023-24
Japan was among the countries that implemented strict regulatory hurdles and imposed bans against the likes of Binance. However, the regulatory environment has been gradually improving and this is evident by the latest developments.
Binance just announced that it resumed its operations in Japan. The exchange secured its place in the Japanese market by acquiring a local exchange called SAKURA Exchange Bitcoin, Inc. (SEBC).
We’re proud to announce that #Binance has officially launched in Japan as Binance Japan K.K.
Users in the country now have access to more tradable tokens than any other exchange, with Spot and Earn products available.
Find more details below.https://t.co/grxPYSsp84
— Binance (@binance) August 1, 2023
The new Japanese subsidiary of the Binance exchange (now known as Binance Japan) will allow Binance to access liquidity in the East. Japan is one of the biggest economic hubs in Asia, hence Binance’s new achievement with SEBC is noteworthy. The launch might encourage other countries to embrace Binance.
Meanwhile, Binance Japan will reportedly list 34 cryptocurrencies that will be available to Japanese users. They will include some of the top digital assets such as Bitcoin [BTC], Ethereum [ETH], Dogecoin [DOGE], and BNB. This means these cryptocurrencies could enjoy an influx of new liquidity from Japan.
Japanese customers will access those digital assets through the spot market. This means a large influx of liquidity might have a significant impact on market prices.
However, this will depend on whether it can secure enough liquidity to trigger a sizable impact. One could argue that this development adds to the list of favorable outcomes that point towards the improving crypto market.
Will the development strengthen BNB’s position?
As noted earlier, BNB will be among the digital assets that will be available on Binance Japan. But how has the cryptocurrency been pairing? Well, it recently concluded the last day of July with its highest volume surge in the last four weeks.
Source: Santiment
Furthermore, an assessment of BNB’s price action revealed that the volume surge may have been bullish activity. The cryptocurrency leaned in favor of the bulls in the last seven days. It traded at $245 at the time of writing, after recovering back above the 50-day moving average.
Source: TradingView
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BNB’s Money Flow Index (MFI) indicated that liquidity has been flowing into the cryptocurrency. However, the fact that it has barely exited its latest low range was a sign that the prevailing demand was still relatively low.
Nonetheless, it does reflect a bit of a positive reaction to Binance’s re-entry into the Japanese market.
