Binance started the process for its new subsidiary in Japan
The cryptocurrency exchange will comply with the requirements established by the local SEC, and will have its business with Binance Japan from June
After being absent from the Japanese market for five years, crypto exchange Binance began the process of establishing a new fully regulated subsidiary in the country. This action follows the acquisition of regulated cryptocurrency platform Sakura Exchange Bitcoin (SEBC) in November 2022.
As part of the agreement, SEBC will cease its current services on May 31 and will reopen in the coming weeks under the name of Binance Japan. Japanese users of the exchange’s global platform will need to register with the new entity. The migration will be available after August 1, 2023, and will involve a new KYC identity verification process to meet local requirements.
As previously announced, funds remaining in SEBC will be automatically converted to Japanese Yen and transferred to users’ bank accounts starting in June.
In an increasingly strict regulatory environment, Binance’s strategy to expand its global reach has been to acquire locally regulated entities. The company followed a similar strategy in Singapore in 2021, in Malaysia in 2022 and most recently in Thailand. In Japan, Binance closed its operations in 2018 after failing to obtain an independent license from local regulators.
According to a notice posted on its website, the exchange will not offer derivatives services in Japan. Also, the global version of Binance will not accept new derivative accounts from Japanese users. As of June 9, residents of Japan using the global platform will not be able to increase or open new options positions. Pending orders will be canceled and existing positions will need to be closed before June 23, the exchange reported. Binance Leveraged Tokens trading and subscription will not be available.
“In the future, we plan to further enrich our service offering in Japan and work closely with regulators to provide fully compliant derivatives services,” the company wrote.
Japan was one of the first countries to establish cryptocurrency regulations. Local laws have contributed to the rapid recovery of funds in February at FTX Japan, a subsidiary of bankrupt FTX. Japanese regulations require exchanges to separate customer funds from other assets.
K. Tovar
Source: Cointelegraph
(Reference image source: Unsplash+)
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