Binance Starts Transition to New Platform in Japan

After not being in the Japanese market for five years, crypto exchange Binance has started setting up a new and fully regulated subsidiary in the country. The move follows the acquisition of regulated crypto exchange Sakura Exchange Bitcoin (SEBC) in November 2022.

As part of the deal, SEBC will discontinue its current services on 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 includes a new identity verification (KYC) process to meet local 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 previously announced.

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

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According to a notice on its website, the exchange will not offer derivatives services in Japan. The global version of Binance does not accept new derivative accounts from users in the country.

In addition, residents of Japan using the global platform will not be able to raise or open options positions after June 9. Pending orders will be canceled and existing positions must be closed before June 23, the exchange said. Binance Leveraged Tokens are not available for trading or subscription.

“Going forward, we plan to continue to enrich our service offerings in Japan and will work closely with regulators to potentially offer derivatives services in a fully compliant manner,” the company wrote.

Japan was one of the first countries to introduce crypto regulations. The local laws contributed to the rapid recovery of funds in February at FTX Japan, a subsidiary of the now-bankrupt crypto exchange FTX. Japanese regulations require crypto exchanges to segregate customer funds from other assets.

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