After five years of being absent from the Japanese market, the crypto exchange Binance has started the process of creating a new, well-regulated one in the country. This move follows the acquisition of the crypto exchange controlled by Sakura Exchange Bitcoin (SEBC) in November 2022.
As part of the agreement, SEBC will cease its current operations from May 31 and re-launch as Binance Japan in the coming weeks. Users of the global exchange platform in the country will need to register with the new company.
The move will be as of August 1, 2023 and will include a new identity verification process to support local requirements. All funds left 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 increasingly restrictive regulatory environment, the reform’s strategy to expand its global reach is to acquire regionally controlled companies. Binance made similar moves in Singapore in 2021, Malaysia in 2022, and Thailand recently. In Japan, it stopped operating in 2018 after receiving an exemption from local regulators.
According to an announcement on its website, the exchange will not provide manufacturing services in Japan.
Binance’s global version will not accept new accounts from users in that country. In addition, Japanese residents who use the global platform will not be able to increase or open new options after June 9. The pending order will be canceled and the current conditions will be closed from June 23, the exchange said. Binance Leveraged Token will not be available for trading or subscription.
“Going forward, we plan to continue to strengthen our offering in Japan and work closely with regulators to eventually provide manufacturing services in perfect way,” the company wrote. Japan was one of the first countries to introduce crypto standards. The local law contributed to the rapid recovery of funds in February and FTX Japan, the help of the current FTX crypto exchange is useless. Japanese law requires crypto exchanges to separate client funds from other assets.