- Binance re-enters Japan with the acquisition of crypto trading platform SEBC.
- Binance shut its Japanese operations in 2018 after regulators warned it was operating without approval.
According to a local news report, leading cryptocurrency exchange Binance is set to return to Japan by acquiring the Japan Financial Services Agency-licensed crypto trading platform Sakura Exchange Bitcoin (SEBC).
Binance acquired SEBC in November 2022, in the hope of reentering the Japanese crypto market.
The ongoing exchange and brokerage services of SEBC will end by 31 May. The body will reemerge as Binance Japan post June 2023, though SEBC hasn’t officially announced any date for the launch.
According to the report, SEBC users must withdraw their funds by 28 May. Any remaining funds in these accounts will be automatically converted to Japanese yen and transferred to users’ bank accounts by 5 June. Binance Japan customers would have to undergo new identity verification and Know Your Customer (KYC) procedures.
Binance negotiating with the global crypto market through collaborations
It was around five years ago that Binance’s primary bid to obtain an independent license in Japan had failed. The exchange was forced to wind down its operations in Japan in 2018 after the regulators warned it was operating without approval.
Binance earlier re-entered the Malaysian crypto sector by obtaining a share in a regulated crypto trading exchange. With a post-money stake in a regulated local stock exchange, the exchange also re-entered the Singapore market.
Similarly, it was able to gain access to the United Kingdom’s sterling payment network by collaborating with Paysafe even as it faced stiff opposition from the regulators.
Binance has been battling with regulatory compliance issues in a number of countries for years now. However, it has been successful in negotiating its way through these troubles.
The exchange entered crypto markets in many countries where it had trouble securing an independent license by obtaining holdings in regulated local trading firms.
Japan was one of the first countries to legislate crypto regulations. Though considered stringent at the time, these regulations have since then been relaxed for crypto exchanges. This was done so that the process of listing new tokens is not cumbersome.
