The move follows the acquisition of the regulated crypto exchange Sakura Exchange Bitcoin (SEBC) in November 2022. As part of the deal, SEBC will cease its current services by May 31 and reopen as Binance Japan in the coming weeks. Users of the exchange’s global platform in the country will need to register with the new entity, and the migration will be available after August 1, 2023, with a new identity verification process (KYC) to comply with local requirements.
Binance’s strategy for expanding its global reach has been to acquire local regulated entities, and it has made similar moves in Singapore, Malaysia, and Thailand. In Japan, Binance shut down operations in 2018 after failing to obtain an independent license from local regulators. With a narrowing regulatory landscape, the exchange plans to continue to enrich its service offerings in Japan and work closely with regulators to provide derivatives services in a fully compliant manner.
Binance’s global version will not accept new derivative accounts from users in Japan, and residents in Japan using the global platform will not be able to increase or open new options positions after June 9. Pending orders will be canceled, and existing positions must be closed before June 23. Binance Leveraged Tokens will not be available for trade or subscription. The exchange will not provide derivative services in Japan, according to a notice on its website.
Japan was one of the first nations to introduce crypto regulations, and local laws require crypto exchanges to separate client funds from other assets. Any remaining funds on the SEBC exchange will be automatically converted to Japanese yen and transferred to users’ bank accounts beginning in June.