Leading cryptocurrency exchange Binance will soon reenter the Japanese market with its services. The re-entry follows an exit made by Binance back in 2018 due to regulatory issues.
Binance to Reenter Japan
Five years ago, Binance stopped operating in Japan over its failure to obtain an independent license from local regulators. Last year, the exchange began to move to position itself in the country again. In late November 2022, Binance acquired 100% of Sakura Exchange BitCoin (SEBC). The acquired company is registered under the country’s financial markets regulator, the Japan Financial Services Agency (JFSA).
In May, Binance released an official notice addressing Japanese residents. The digital asset custodian stated that it will not provide derivatives trading services in Japan. It added that it will “work closely with regulators to possibly provide derivatives services in a fully compliant manner.”
Today, Binance CEO and founder Changpeng Zhao stated at the ongoing Asian WebX conference held in Tokyo, Japan, that Japan had had a clear regulatory framework for cryptocurrency exchanges involving coin listing and stablecoins since 2017. Commenting on his company’s reentry into the Japanese market, CZ said:
“Binance is extremely happy to be able to participate in the Japanese market again from the acquisition of the SEBC platform last November. We are going to launch the full service in August. So hopefully, we will see you on our platform again.”
The latest announcement is part of Binance’s previously disclosed plans to launch a Japanese subsidiary this summer.
Other Exchanges Fleeing From Japan
While Binance is embracing the Japanese market, other major crypto exchanges are leaving the country. For example, crypto custodian Kraken announced its second exit from the Japanese market in December. The company’s reason for the recent exit was to reduce costs and prioritize investing resources. It cited the Japanese market condition at the time as part of the reasons for the action.
A local report confirmed last month that OKX will also exit the Japanese market due to local laws.
