After 5 years leaving the Japanese market, cryptocurrency exchange Binance has begun the process of establishing 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 agreement, SEBC will cease its current services by May 31 and reopen as Binance Japan in the coming weeks. Users of the local exchange’s global platform will have to register with the new entity. The migration will be available after August 1, 2023 and will include a new identity verification (KYC) process to comply with local requirements.
Any remaining funds on the SEBC exchange will be automatically converted to Japanese yen and transferred to the user’s bank account starting in June.
With an increasingly tense regulatory landscape, the exchange’s strategy to expand its global reach is to acquire locally regulated entities. Binance made a similar move in Singapore in 2021, in Malaysia in 2022, and most recently in Thailand. In Japan, they ceased operations in 20 years after failing to obtain an independent license from local regulators.
According to an announcement on its website, the exchange will not offer derivatives services in Japan. The global version of Binance will not accept new derivative accounts from Japanese users.
In addition, residents in Japan using the global platform will not be able to increase or open new options positions after June 9. Pending orders will be canceled and existing positions must be closed before June 23. Binance Leveraged Tokens will not be available for trading or registration.