Binance is set to reenter Japan after acquiring Sakura Exchange Bitcoin (SEBC), a regulated cryptocurrency exchange platform. According to the notice, Binance Japan could launch in June 2023.
According to a report in a local newspaper, SEBC will cease offering its present cryptocurrency exchange and brokerage services on May 31 and reopen as Binance Japan in June 2023. The SEBC announcement made no mention of an official launch date.
Users of the SEBC exchange are required to extract their funds by May 28. By June 5, any remaining funds will be automatically converted to Japanese yen and transferred to users’ bank accounts. Users of Binance Japan would be required to undergo additional identity verification and Know Your Customer procedures.
Nearly five years have passed since Binance’s initial attempt to obtain an independent license in Japan was unsuccessful. Binance’s reentry into Japan through an acquired entity comes nearly five years after its primary effort to get a separate license failed. In 2018, Binance was forced to close its Japan operations after financial regulators warned it was operating without proper authorization.
The major cryptocurrency exchange has encountered regulatory compliance issues in over a dozen countries. However, the exchange platform has been able to repair its relationships with regulators. Binance reentered many markets in which it had struggled to obtain an independent license by acquiring stakes in regulated entities.
Binance was able to reenter the Malaysian cryptocurrency market after acquiring a stake in a regulated exchange platform before reentering the Japanese market. In addition to reentering the Singapore market, the exchange acquired an 18% stake in a regulated stock exchange.
Similarly, the crypto platform was able to access the sterling payment network in the United Kingdom through a partnership with Paysafe despite regulators denying access.
Japan is among the first countries to implement crypto regulations. Once considered stringent, the country has loosened regulatory requirements for crypto platforms, making it simpler to list new cryptocurrency tokens.
