Four years after Binance, the world’s largest crypto exchange, pulled out of Japan, it will apply for a license to operate in the country.
Re-licensed in Japan
People familiar with the case said Bloomberg that the country’s friendlier approach to crypto and significant opportunities to attract new users lured the exchange back to Japan. The move comes as Japan, under its new Prime Minister Fumio Kishida, wants to adopt more web3-friendly policies.
The quest for a ‘new capitalism’ as a solution to Japan’s slow growth and growing inequality has led the country’s politicians to work on broad-based policies. The policy ranges from reforming the tax on crypto and NFT to attracting crypto talent. In a May speech in London’s financial district, Kishida said:
Japan will develop an environment for the promotion of Web3. For example blockchain, NFTs and the Metaverse.
A spokesperson told Bloomberg that Binance is committed to collaboration.
Binance works with regulators and policy makers. The goal is to create policies that protect consumers, encourage innovation and move our industry forward.
Binance and Japan
Should Binance succeed in obtaining a license, it will face stiff competition. Major players like Crypto.com and FTX are already active in Japan. Earlier this year, a company was bought by Singaporean Temasek crypto exchange DeCurret. The state fund has been operating in the country since 2018.
Japan’s more open stance towards crypto contrasts with that of many other countries, such as the US and the UK. In particular, the crypto crash that wiped out about $2 trillion from the digital asset markets played a major role. Many companies were forced to close their doors.
But the country’s government does not want to appear reckless. It passed a bill in June that would require stablecoins to be fiat-backed by legal tender. For example, the Japanese yen.
Binance was last active in Japan in 2018. The Japanese Financial Services Agency (FSA) had told the company to stop trading because it was not licensed. In 2021, the FSA issued another warning to the company. This time it would not have registered with the regulator.
