The crypto exchange is poised to return to Japan with the launch of “Binance Japan” next month after acquiring SEBC last year.
Binance to Re-enter Japan’s Crypto Market After Acquiring Regulated Entity SEBC
Binance is getting ready to re-enter the Japanese market by buying a 100% share in Sakura Exchange BitCoin (SEBC), a registered supplier of crypto services. The move marks Binance’s re-entry into Japan after a four-year absence, during which the country’s financial authorities issued a warning that the exchange was operating in the country without permission.
To ensure regulatory compliance, Binance CEO Changpeng Zhao announced that the new service, provisionally named “Binance Japan,” would launch after June 2023. Existing services on SEBC will terminate on May 31, 2023, ahead of the new launch.
SEBC Exchange has recently announced a significant change in its operational policy. According to the new directive, users of the platform must withdraw their cryptocurrency assets by May 28; failing to do so will result in the automatic conversion of assets into Japanese yen.
This change is expected to take effect on June 5, with the transferred funds going directly to the users’ bank accounts. However, users who wish to continue using the platform under the Binance name must undergo a new round of identity verification and KYC checks. These new guidelines are a proactive measure to enhance the platform’s and its users’ safety and security.
A Strategic Move towards Compliance and Expansion in Asia
Japan is known for its high regulatory standards for cryptocurrency exchanges, including the segregation of customer and exchange assets, keeping most exchange assets in cold wallets, and keeping customers’ fiat with a Japanese trust company or bank trust. As a result, Binance’s acquisition of a regulated entity to enter the Japanese market is not surprising.
Binance’s acquisition of regulated entities to enter new markets is a strategy introduced previously. Earlier, the exchange managed to re-enter the Malaysian market after acquiring a stake in a regulated entity, and it re-entered the Singapore market with an 18% stake in a regulated stock exchange.
Similarly, the exchange partnered with Paysafe to access the United Kingdom’s sterling payment network after regulators denied it access.
Binance’s re-entry into the Japanese market signals the exchange’s commitment to complying with regulatory requirements and expanding its presence in Asia. The move will likely increase competition among cryptocurrency exchanges in Japan, benefitting consumers through better services and lower fees.
Final Thoughts
As the cryptocurrency market continues to evolve, exchanges need to navigate regulatory challenges to ensure the safety and protection of their customers’ assets. Binance’s re-entry into the Japanese market exemplifies how crypto exchanges can work with regulatory bodies to achieve compliance and establish themselves in new markets.
Overall, Binance’s expansion and efforts to comply with regulations demonstrate the continued growth and maturation of the cryptocurrency industry, and it will be interesting to see how this trend continues in the coming years.
She is a freelance writer specializing in cryptocurrency news with a strong background in finance and a passion for technology. With several years of experience covering the latest trends and analysis in the rapidly evolving crypto market, she is dedicated to providing accurate and insightful coverage of the industry. Their goal is to help readers stay informed and up-to-date on the latest developments in the world of cryptocurrency.
