Binance acquires JFSA-licensed SEBC, planning to reenter the Japanese crypto market as Binance Japan after June 2023.
Cryptocurrency exchange titan Binance has strategically acquired the Japan Financial Services Agency (JFSA)-licensed Sakura Exchange Bitcoin (SEBC) in a bid to reestablish its foothold in the Japanese crypto market. The purchase took place in November 2022. Although an exact launch date remains unannounced, Binance Japan could commence operations after June 2023.
According to Coinpost, Binance’s Japanese crypto exchange Sakura Exchange BitCoin (SEBC) announced plans to launch a new service Binance JAPAN after June 23. Binance acquired a 100% stake in SEBC in November last year to officially enter the Japanese market and is subject to the…
— Wu Blockchain (@WuBlockchain) April 28, 2023
In preparation for the transition to Binance Japan, SEBC will discontinue its existing crypto exchange and brokerage services by May 31. To facilitate a seamless changeover, SEBC users need to withdraw their funds before May 28. Any funds that remain in user accounts past this date will be automatically converted into Japanese yen and transferred to users’ bank accounts by June 5. All Binance Japan users need to undergo new identity verification and Know Your Customer (KYC) procedures.
This development signals Binance’s comeback to the Japanese market after nearly five years since its initial endeavor to obtain an independent license proved unsuccessful. In 2018, Binance had to shut down its Japanese operations following warnings from financial regulators regarding its lack of proper regulatory authorization.
Regulatory Scrutiny
The prominent crypto exchange has faced regulatory compliance obstacles in more than a dozen countries. However, Binance has managed to rebuild relationships with regulators and reenter various markets by acquiring stakes in regulated entities. This approach has proved crucial in overcoming challenges associated with obtaining independent licenses.
Before its planned return to Japan, Binance successfully reestablished its presence in the Malaysian market by acquiring a stake in a regulated crypto exchange. Furthermore, Binance reentered the Singapore market by securing an 18% stake in a regulated stock exchange. The cryptocurrency platform also obtained access to the United Kingdom’s sterling payment network through a collaboration with Paysafe, despite an earlier denial of access by regulators.
Japan has been a pioneer in introducing cryptocurrency regulations. Although initially considered stringent, the regulatory requirements for crypto platforms have since been relaxed, paving the way for easier listings of new crypto tokens. Binance’s reentry into the Japanese market through the acquisition of a regulated exchange like SEBC showcases the exchange’s commitment to compliance and global expansion.
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