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After a five-year absence from the Japanese market, cryptocurrency exchange Binance is making its return by establishing a fully regulated subsidiary in the country. This strategic move follows Binance’s acquisition of the regulated crypto exchange Sakura Exchange Bitcoin (SEBC) in November 2022.
As part of the transition, SEBC will cease its current services and rebrand as Binance Japan in the coming weeks.
Users in Japan will need to register with the new entity, and a migration process will be available after August 1, 2023, featuring a new identity verification process to comply with local regulatory requirements. Any remaining funds on the SEBC exchange will be automatically converted to Japanese yen and transferred to users’ bank accounts starting in June.
Binance’s expansion strategy involves acquiring locally-regulated entities, and this move aligns with its efforts to strengthen its global reach. Besides, similar moves were made in Singapore, Malaysia, and Thailand, following Binance’s exit from the Japanese market in 2018 due to the inability to obtain an independent license from local regulators.
It’s important to note that Binance Japan will not offer derivative services, and the global version of Binance will not accept new derivative accounts from Japanese users. Furthermore, residents in Japan using the global platform will face restrictions on options trading, with pending orders canceled and existing positions required to be closed by June 23.
However, Binance expressed its intention to work closely with regulators to potentially offer derivatives services in a fully compliant manner in the future.