Crypto exchange Binance is once again planning to enter the Japanese market. It recently acquired a 100% stake in a licensed crypto exchange in the country.
Binance to Japan again
In an official public announcement on Nov. 30, Binance CEO Changpeng Zhao said the exchange was committed to re-entering the Japanese market under regulatory compliance. The acquisition of Sakura Exchange BitCoin (SEBC) would mark the return of the exchange to the Japanese market after four years. Sakura Exchange BitCoin is a Japan Financial Services Agency licensed company.
Binance’s spokesperson said the following about the recently acquired stake in the Japanese company:
We can say that the acquisition of SEBC marks Binance’s first license in East Asia. As Asia is a market with a lot of potential, we hope to expand further.
Binance had to halt its operations and plan to open a headquarters in Japan in 2018. It had to do this after a report from the FSA that it was operating without a license. The Japanese government warned the exchange again in 2021 on similar grounds.
Binance’s acquisition of a regulated entity to enter a crypto market is nothing new. Previously, Binance managed to re-enter the Malaysian market after acquiring a stake in a regulated entity.
In addition, the exchange re-entered the Singaporean market by acquiring an 18% stake in a regulated exchange. Binance also managed to gain access to the UK payment network by partnering with Paysafe.
The use of crypto in Japan
Japan is considered one of the first cryptocurrencies to introduce some form of regulation for crypto trading. While strict, Japan’s approach to cryptocurrency regulation has been widely appreciated. In addition, many G20 countries even consulted the nation on global crypto parameters.
Japan has recently further relaxed its regulatory policy. This has done it to encourage and prosper more crypto startups. In addition, the country has made it easier to list crypto coins.