Major cryptocurrency exchange Binance just announced the launch a Japan-based arm known as Binance Japan. This is a significant move towards operating within Japan’s regulatory framework. Notably, this development comes approximately two years after the country’s financial regulator issued a warning to the exchange.
Binance Japan has officially started offering spot trading for 34 tokens on August 1, with plans to migrate global Binance users beginning on August 14.
Background, FSA’s Warning and Binance’s Response
Japan has played a crucial role in Binance’s history, being the former headquarters of the crypto exchange after its relocation from China. However, the exchange moved its operations to Malta in 2018 due to warnings from Japanese financial regulators concerning its license.
In June 2021, the Financial Services Agency (FSA) of Japan sent a letter to Binance. They cautioned the exchange about operating in the country without a proper license. During that time, a spokesperson from Binance clarified that the firm did not conduct exchange operations in Japan nor actively solicit Japanese users.
Furthermore, to re-enter the Japanese crypto market under the required regulatory regime, Binance acquired Sakura Exchange Bitcoin in November 2022. This strategic move was aimed at bolstering the development of the Japanese digital-asset market. Albeit considering the growing interest in blockchain technology.
Japanese Government’s Support for Web3 Innovations
Japanese Prime Minister Fumio Kishida has expressed support for the government’s plans to promote Web3 innovations within the country. This positive stance is likely to have an impact on the growth of the cryptocurrency and blockchain industry in Japan.
While Binance makes strides in Japan, some other crypto exchanges, such as Kraken and Coinbase, have decided to shut down their operations in the country, citing prevailing market conditions. This move by Binance is expected to boost the development of the digital-asset market. Furthermore, it will contribute to the overall growth of blockchain technology within the country.
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