Crypto exchange Binance returns to Japan market after leaving it in 2018 due to regulatory hurdles. The exchange acquired a licensed crypto exchange called Sakura Exchange Bitcoin (SEBC) in November 2022 and is now preparing to launch a new and fully compliant platform named Binance Japan.
The transition will involve SEBC shutting down its current services by May 31 and reopening as Binance Japan in the following weeks. Users of Binance’s global platform in Japan will have to sign up with the new entity and undergo a new identity verification process (KYC) to meet the local standards. Any remaining funds on the SEBC exchange will be automatically converted to Japanese yen and transferred to users’ bank accounts starting in June, according to Binance.
Binance has expanded its global presence by acquiring local regulated entities in different countries, such as Singapore, Malaysia, and Thailand. The exchange faced difficulties obtaining an independent license from the Japanese regulators in 2018 and decided to exit the market. However, with the acquisition of SEBC, Binance hopes to reestablish its foothold in one of the most mature and strict crypto markets in the world.
However, Binance will not offer derivative services in Japan, as per its notice on its website. Binance’s global version will also stop accepting new derivative accounts from users in Japan. Moreover, residents in Japan using the global platform will not be able to open or increase new options positions after June 9. Pending orders will be canceled, and existing positions must be closed before June 23, said the exchange. Binance Leveraged Tokens will also be unavailable for trade or subscription.
“In the future, we plan to continue to enrich our service offerings in Japan and will work closely with regulators to possibly provide derivatives services in a fully compliant manner,” the company wrote.
Japan was one of the first countries to introduce crypto regulations, which helped recover funds from the bankrupt crypto exchange FTX Japan in February. Japan’s regulations require crypto exchanges to separate client funds from other assets.