Binance Begins Transition to New Platform in Japan

After five years out of the Japanese market, crypto exchange Binance has Started The process of setting up a new and fully regulated subsidiary company in the country. The move comes after the November 2022 acquisition of regulated crypto exchange Sakura Exchange Bitcoin (SEBC).

As part of the deal, SEBC will shut down its current services as of May 31 and reopen as Binance Japan in the coming weeks. Users of the Exchange’s global platform in the country will have to register with the new entity. The migration will be available after August 1, 2023 and will include a new identity verification process (KYC) to comply with local requirements.

Binance previously revealed that any remaining funds on the SEBC exchange will be automatically converted into Japanese yen and transferred to users’ bank accounts starting in June.

With a narrow regulatory landscape, the exchange’s strategy to expand its global reach has been to acquire locally regulated entities. Binance made a similar move to Singapore in 2021, Malaysia in 2022, and most recently Thailand. In Japan, it ceased operations in 2018 after failing to obtain an independent license from local regulators.

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According According to a notice on its website, the exchange will not provide derivatives services in Japan. The global version of Binance will not be accepting new derivatives accounts from users in the country.

Additionally, residents in Japan using the global platform will not be able to increase or open new options positions after June 9th. The exchange said pending orders would be cancelled, and existing positions should be closed before June 23. Binance Leveraged Tokens will not be available for trading or subscription.

“In the future, we plan to continue to enrich our service offerings in Japan and work closely with regulators to provide derivatives services in a fully compliant manner.”

Japan was one of the first countries to implement crypto regulations. Local laws contributed to the rapid recovery of funds in February at FTX Japan, a subsidiary of now-defunct crypto exchange FTX. Japan’s regulations require crypto exchanges to segregate client funds from other assets.

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