Five years after exiting the Japanese market, cryptocurrency exchange Binance has begun the process of establishing a fully regulated subsidiary in Japan. The move follows its acquisition of regulated cryptocurrency exchange Sakura Exchange Bitcoin (SEBC) in November 2022.
As part of the deal, SEBC will be discontinuing its current service by May 31 and relaunching as Binance Japan in the coming weeks. Users of the domestic exchange’s global platform will have to register with the new entity.
The transition will be available after August 1, 2023 and will include a new identity verification process to comply with local requirements, Coin Telegraph reported.
Funds remaining on the SEBC exchange will be automatically converted into Japanese Yen and transferred to users’ bank accounts from June, Binance previously revealed.
In a tightening regulatory environment, the exchange’s strategy to expand its global footprint has been to acquire local regulated entities. Binance has made similar moves in Singapore in 2021, Malaysia in 2022 and most recently in Thailand. In Japan, it ceased operations in 2018 after failing to obtain an independent license from local regulators.
The exchange does not offer derivatives services in Japan, according to a notice on its website. The global version of Binance will not accept new derivatives accounts from domestic users.
Furthermore, Japanese residents using the global platform will not be able to increase or open new options positions after June 9th. Pending orders have been canceled and existing positions must be closed by June 23, the exchange said.
Binance Leveraged Tokens cannot be used for trading or subscriptions.
“In the future, we plan to continue to strengthen our service offerings in Japan and may work closely with regulators to offer derivatives services in a fully compliant manner,” the company wrote. ing.
Japan was one of the first countries to introduce cryptocurrency regulation. Local laws helped FTX Japan, a subsidiary of bankrupt crypto exchange FTX, to recover its funds quickly in February. Japanese regulations require cryptocurrency exchanges to segregate customer funds from other assets.
https://financialtribune.com/articles/sci-tech/118304/binance-kicks-off-transition-to-new-platform-in-japan Binance Begins Migration to New Platform in Japan