To enter the Japanese market legally, Binance purchased all Sakura Exchange Bitcoin, a crypto platform registered in Japan.
The biggest cryptocurrency exchange in the world declared today that it would acquire a company and use it to enter the Japanese market as an entity governed by the Japan Financial Services Agency (JFSA). The transaction’s terms were not disclosed in the exchange. Binance said it aims to “support a responsible global environment for cryptocurrencies” by providing Japanese regulatory services through the SEBC.
The announcement describes SEBC as a Tokyo-based, JFSA-registered cryptocurrency exchange that provides brokerage and consultation services about cryptocurrencies. The platform currently supports 11 trading pairs.
Binance’s first license in East Asia was after the purchase of SEBC. Before that, the exchange had already obtained regulatory approvals from France, Spain, Bahrain, Dubai, New Zealand, Kazakhstan, Poland, Lithuania, and Cyprus.
Binance attempted to enter Japan for the first time in 2018. However, the exchange had to abandon its plans to establish a base in Japan after inquiries from the securities regulator resulted in a notice to cease operations in the country without a license. Since then, the exchange has made a concerted effort to enter the Japanese market. As previously reported, Binance sought a license to operate in Japan in late September.
The move coincided with Japan’s adoption of more crypto and Web3-friendly policies. Cryptocurrencies are now regulated as a trading assets in the country. Japan’s financial regulators offered tax breaks to crypto and private equity investors in early September. The country has even given NFT awards to 7 mayors.
Japanese companies have also expressed interest in Web3, crypto, and DeFi. For example, NTT DOCOMO, Japan’s largest mobile telecoms operator, announced earlier this month that it intends to invest up to 600B yen in Web3 infrastructure.