- Binance will launch in Japan in June 2023 after acquiring Sakura Exchange Bitcoin (SEBC) and restructuring the SEBC exchange
- SEBC exchange supports 11 cryptocurrency trading pairs to comply with Japanese regulations, which have high standards for crypto exchanges
- Binance’s move into Japan displays its dedication to the crypto industry and emphasizes the country as a significant market with strict regulatory standards
Binance, the world’s largest cryptocurrency exchange, has announced its strategic expansion into Japan. The exchange has acquired Sakura Exchange Bitcoin (SEBC) and is set to offer cryptocurrency services in the Japanese market.
As part of the move, the SEBC exchange will be renamed “Binance Japan,” and existing services will be terminated on May 31, 2023, to restructure the exchange. According to the Japanese branch of Binance, the new Binance Japan is scheduled to start operations in June 2023.
To comply with Japanese regulations for crypto exchanges, the SEBC exchange has met the Japan Virtual Currency Exchange Association’s requirements by supporting 11 cryptocurrency trading pairs. Japan is known for its high regulatory standards for crypto exchanges, which include segregating customer and exchange assets. Moreover, regulations require most of an exchange’s help to be kept in cold wallets and customers’ fiat funds to be held by a Japanese trust company or bank trust.
Earlier this year, Japan’s financial authorities warned Binance that it was operating in the country without permission. Since then, Binance has been searching for a local cryptocurrency exchange as part of its efforts to comply with Japanese regulations. With the complete rebranding of the SEBC, Binance will obtain full regulatory status in Japan.
Binance’s expansion into Japan demonstrates its commitment to the cryptocurrency industry and its customers. In addition, it highlights Japan’s significance as a primary market for cryptocurrencies, and the country’s strict regulatory standards are a welcoming development for the industry.
How Japan Treats Crypto
Japan has been at the forefront of the cryptocurrency industry since its emergence in the 2010s. Although the country faced a major setback in 2014 due to the infamous Mt. Gox scandal, where millions of dollars were lost, it did not ban cryptocurrencies altogether. Instead, the country has extensively regulated the crypto industry to protect consumers.
In recent news, Japan declared a plan to digitize its national identity cards in September 2022, allowing local authorities and Web3 services to issue non-fungible tokens (NFTs). This move further highlights Japan’s progressive stance towards the cryptocurrency industry.
Moreover, Japan’s Payment Services Act recognizes payment through crypto assets as “not denominated in fiat currency and used for paying unspecified persons.” However, cryptocurrency exchange services in the country must register with the Financial Services Agency before commencing operations.
Despite regulatory measures, the Japanese government allows its citizens to own and invest in cryptocurrencies. These efforts have established Japan as a crucial hub for the crypto industry in Asia.
The effective regulations and government support towards cryptocurrency have also led to the entry of significant crypto companies such as Binance to expand their operations in the country. Binance’s recent acquisition of the Sakura Exchange Bitcoin (SEBC) indicates the company’s trust in the Japanese regulatory framework.
Japan’s approach towards cryptocurrency has been moderate and complacent. With its regulations, digitization efforts, and government support, the country has set an example for the rest of the world to follow in accommodating the rapidly developing crypto industry.
