According to the latest news, Binance has started with the procedure of creating a completely new, fully-licensed subsidiary in Japan.
Binance Finally Enters Japan
In accordance with the agreement, Sakura Exchange Bitcoin (SEBC) will stop providing its present services by May 31 and relaunch as Binance Japan in the coming weeks.
The new organization will need registration from users of the exchange’s international platform in the nation.
Migration After August 1
After August 1, 2023, the migration will be accessible, and an updated identity validation procedure (KYC) will be included to satisfy local regulations. Binance previously said that any money that remains on the SEBC exchange will be immediately transformed to Japanese yen and delivered to customers’ bank accounts starting in June.
Binance Japan will not Provide Derivative Services
The trading platform will not be providing derivative products or services in Japan, according to a notification on its website. Users from the nation cannot open new derivative accounts on Binance’s international platform. After June 9, Japanese citizens utilizing the global platform won’t be allowed to expand or establish new options positions.
According to the exchange, orders that remain unfilled are going to be canceled, and existing accounts have to be liquidated by June 23. The Binance Leveraged Tokens won’t be traded or subscribed to.
The business stated in a statement:
“In the future, we plan to continue to enrich our service offerings in Japan and will work closely with regulators to possibly provide derivatives services in a fully compliant manner.”
Acquisition of SEBC
Notably, the news comes after Sakura Exchange Bitcoin (SEBC), a licenced cryptocurrency exchange, was acquired in November 2022 after Hitomi Yamamoto, CEO of SEBC, acknowledged Binance’s history of compliance. Under the Payment Services Act (PSA), Japan is one of the countries that recognises Bitcoin (BTC) and other virtual assets as legal asset classes.
It is important to look at the fact that to meet its regulatory requirements, the world’s largest cryptocurrency exchange has disclosed its plans to establish a subsidiary firm in the United Kingdom.