Cryptocurrency exchange Binance plans to reenter the Japanese market after acquiring a 100% stake in a licensed crypto service provider in the country, Cointelegraph Japan reported.
In an official public announcement on November 30, Binance CEO Changpeng Zhao said the crypto exchange was committed to re-entering the Japanese market under regulatory compliance. The acquisition of Sakura Exchange BitCoin (SEBC), a Japan Financial Services Agency-licensed business, would mark the re-entry of global exchange in the Japanese market after four years.
“We can say that the acquisition of SEBC marks Binance’s first license in East Asia, and as Asia is a market with potential, we hope to expand in other regions.”
Following a notice from the FSA for operating without a licence, Binance was forced to cease operations and abandon plans to establish a headquarters in Japan in 2018. In 2021, the Japanese government issued a second warning to the crypto exchange for comparable reasons.
It is nothing new for Binance to purchase a regulated company in order to enter the cryptocurrency market where it has found it challenging to obtain a licence on its own. Binance previously succeeded in reentering the Malaysian market after buying a stake in a licenced company.
When Cointelegraph contacted Binance to ask if the exchange had also applied for a separate licence in Japan, a spokesperson declined to comment. Japan is regarded as one of the first countries to introduce trading regulations for cryptocurrencies. Although strict, the Japanese approach to cryptocurrency laws was well received, and G20 countries even consulted Japan regarding general crypto guidelines, Cointelegraph noted.
Recent regulatory policy easing in Japan has encouraged more cryptocurrency startups, allowed them to thrive, and made coin listings simpler.
(With insights from Cointelegraph)