Binance is set to re-enter the Japanese market by partnering with Liquid, a biometric data authentication service, to meet Japan’s stringent KYC regulations.
It makes use of an AI-based image processing system. It facilitates identity checks that adhere to the regional Japanese KYC rules. Gathering biometric information is crucial to KYC procedures. Due to privacy issues, the major regulators have yet to pay it any attention.
Different regulators worldwide have harshly criticized some initiatives, like Worldcoin, for collecting biometric data. The general manager of Binance Japan, Takeshi Chino, promises that the crypto exchange has taken all essential precautions for safety.
“Binance’s robust KYC framework is critical in protecting the platform, users and community, and the entire ecosystem from potential threats.”
Regarding compliance and KYC procedures, Japan has strict laws in place. According to regional authorities, KYC procedures are required by Bitcoin exchanges.
This means checking the backgrounds of its clients. Binance entered the Japanese market in November 2022 by purchasing SAKURA Exchange BitCoin, Inc. (SEBC), a recognized local cryptocurrency exchange.
Due to this acquisition, SEBC changed its name to Binance Japan Inc., concentrating on creating a Web3 environment in Japan that is fully compliant. Binance Japan intends to list 34 tokens and roll out several services, such as spot trading, Earn goods, and an NFT marketplace, in August, when it will officially start.
The decision is significant because several other important exchanges, including Coinbase and Kraken, recently stopped operating in Japan.
