Cryptocurrency exchange Binance is preparing to return to Japan after acquiring the regulated cryptocurrency trading platform Sakura Exchange Bitcoin (SEBC). Binance bought the platform – which is licensed by the Japanese Financial Services Agency – in November 2022, with the aim of returning to the Japanese cryptocurrency market.
According to a report in a local newspaper, SEBC will end its current cryptocurrency trading and brokerage services by 31 May and reopen as Binance Japan after June 2023. SEBC has not announced an official launch date.
SEBC platform users must withdraw their funds before the deadline on 28 May. Any remaining funds in these accounts will be automatically converted to Japanese yen by 5 June and transferred to users’ bank accounts. Binance Japan users must undergo identity verification and new Know Your Customer checks.
Binance’s return to Japan comes through an acquired entity after almost five years of failing to obtain an independent license. Binance was forced to close its operations in Japan in 2018 after financial regulatory authorities warned that it was operating without regulatory permission.
The leading cryptocurrency exchange has faced compliance issues in more than one country. However, the trading platform has been able to repair its relationships with lawmakers. In many countries where it has struggled to obtain an independent license, Binance has re-entered these markets by obtaining stakes in regulated entities.
Before its return to the Japanese market, Binance was able to re-enter the Malaysian market after obtaining a stake in a legitimate trading platform. The platform also re-entered the Singaporean market with an 18% stake in a legitimate stock exchange. Similarly, the platform was able to leverage the pound sterling payment network in the UK in partnership with Paysafe despite lawmakers denying access to the same network.
Japan was one of the first countries to introduce regulations for cryptocurrencies. While regulatory requirements were strict at the time, the country has eased regulatory demands for cryptocurrency platforms, making it easier to list new cryptocurrency tokens.