- July 25, 2023
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
Amid global expansion plans, Binance CEO Changpeng “CZ” Zhao announced that Binance is commencing operations in Japan by August. Before this development, the crypto firm acquired a 100% stake in Sakura Exchange Bitcoin (SEBC), a Japan-based crypto trading platform.
CZ disclosed this via a video at the Web3 conference WebX held in Tokyo on Tuesday, July 25. According to the CEO’s remark, Japan’s clear regulatory atmosphere prompted Binance to establish its platform in Japan.
Binance To Enter Japan As A Fully Regulated Exchange
Changepeng Zhao praised Japan for setting a precedence for other countries with clear crypto exchange regulators since 2017. He expressed excitement about the potential opportunities awaiting Binance in the Japanese market.
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In 2018, Binance ceased operations in Japan after failing to obtain local regulators’ licenses. However, after four years, the crypto platform decided to return to the Japanese market.
It acquired Sakura Exchange Bitcoin (SEBC) to re-enter the Japanese market as a fully regulated entity under Japan Financial Services Agency (JFSA)’s oversight.
As part of the SEBC deal, the crypto exchange ceased offering existing services from its global platform to Japanese residents on May 31, with plans to re-enter the market as Binance Japan. The exchange also disclosed plans to create a platform that fully complies with local Japanese regulations.
Users on its global platform can migrate to the soon-to-launch Binance Japan through a new identity verification process commencing after August 1. Binance will then complete users’ transition to its Japanese arm before they can start using the new platform on December 1.
In addition, users must complete a Know Your Customer (KYC) procedure, without which they would not have access to deposit, stake, or perform other activities on the new platform. Users who fail to complete the KYC will only have access to withdraw their assets.
CZ Ramps Up Global Expansion Plans Amid Heightened Regulatory Scrutiny
Binance came under global regulators’ radar amid heightened scrutiny on crypto exchanges after the FTX mayhem. The crypto exchange has since faced heavy scrutiny in Australia, the US, and the UK.
An example is Australian market regulators launched a crackdown action against the exchange’s Aussie offices. Amid the fiasco, Binance’s top local payment partner abandoned support for the exchange, with banks suspending exchange-related services to customers.
Furthermore, the crypto platform has been under scrutiny by the United States Department of Justice for alleged anti-money laundering rules non-compliance. In June, the US Securities and Exchange Commission (SEC) launched legal action against the crypto exchange for alleged securities law violations.
Despite these challenges, the crypto company remains keen on its global expansion plans. However, its expansion strategy involves acquiring local regulated entities to avoid falling out with regulators. The Japan move follows similar ones in Singapore in 2021, Malaysia in 2022, and Thailand in 2023.
It bears mentioning that Binance Japan will not offer derivatives services. Also, its global platform will no longer accept new derivatives accounts from Japan-based users.
