Binance kicks off transition to new platform in Japan - Income Hunts

Binance kicks off transition to new platform in Japan

After a five-year absence from the Japanese market, cryptocurrency exchange Binance has taken steps to establish a new subsidiary in the country that will operate under full regulatory compliance. This move comes after Binance acquired the regulated crypto exchange Sakura Exchange Bitcoin (SEBC) in November 2022.

Binance kicks off transition to new platform in Japan | Income Hunts


As part of the acquisition agreement, SEBC will halt its current services by May 31 and relaunch as Binance Japan in the coming weeks. Users who currently access Binance's global platform in Japan will need to register with the new entity. The migration process will commence after August 1, 2023, and will include a new identity verification procedure to meet local regulatory requirements.

Any remaining funds held on the SEBC exchange will be automatically converted to Japanese yen and transferred to users' bank accounts starting from June, as previously announced by Binance.

Binance has pursued a strategy of acquiring locally-regulated entities to expand its global presence amid tightening regulations. Similar moves were made by Binance in Singapore in 2021, Malaysia in 2022, and most recently, Thailand. In Japan, the exchange had ceased operations in 2018 after failing to obtain an independent license from local regulators.

According to a notice on its website, Binance Japan will not offer derivative services. The global version of Binance will not accept new derivative accounts from users in Japan. Additionally, Japanese residents using the global platform will not be able to open new options positions or increase existing ones after June 9. Pending orders will be canceled, and existing positions must be closed before June 23. Binance Leveraged Tokens will also be unavailable for trade or subscription.

The company stated its intention to work closely with regulators to potentially provide fully compliant derivative services in the future, while continuing to enhance service offerings in Japan.

Japan has been at the forefront of cryptocurrency regulations, and its laws have played a crucial role in the recovery of funds at FTX Japan, a subsidiary of the now-bankrupt crypto exchange FTX. The local regulations mandate that crypto exchanges keep client funds separate from other assets.

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