Binance, the world’s largest cryptocurrency exchange, is set to re-enter the Japanese market after leaving in 2018 due to regulatory issues. The company’s return to Japan comes after it acquired Sakura Exchange BitCoin (SEBC) in November last year. In an announcement by SEBC, Binance Japan will start providing services and products to local customers after June 2023.
Sakura Exchange BitCoin, an exchange directly regulated by Japan’s Financial Services Agency (FSA), has advised users to withdraw their holdings ahead of the May 31 deadline. The exchange will cease all existing services until the opening of Binance Japan. Users who fail to withdraw their holdings will have their assets converted to Japanese yen based on the rate as of June 5.
Customers willing to join Binance Japan will have to re-apply for account opening and pass the necessary verification requirements. The process is expected to take some time as the company complies with regulatory requirements.
Binance’s Exit and Return to Japan
Binance exited the Japanese market in 2018 after domestic watchdogs warned it had been operating without permission. There were also rumors that Binance was subject to criminal charges by the FSA. However, CEO Changpeng Zhao dismissed the speculation, stating that his organization was in “constructive dialogues” with the relevant agencies.
Binance’s return to Japan comes at a time when the country is increasing its oversight on the cryptocurrency industry. The FSA has been working to tighten regulations around digital assets to prevent illegal activities such as money laundering and terrorism financing.
Impact on the Cryptocurrency Industry
The launch of Binance Japan is expected to have a significant impact on the cryptocurrency industry in Japan. Binance’s global reach and reputation could attract a large number of customers to the Japanese market, thereby increasing competition among exchanges.
Furthermore, the launch could lead to increased innovation and investment in the cryptocurrency industry in Japan. With Binance’s resources and expertise, it is likely that the company will contribute to the development of the industry in the country.