Binance, the world’s largest crypto exchange by trading volume, is entering the Japanese market after the acquisition Sakura Exchange BitCoin (SEBC), the company said in a blog post on 30 November.
According to the announcement, Binance was committed to re-enter the Japanese market under regulatory compliance, and the acquisition of SEBC was the perfect opportunity as it is licensed under Japan’s Financial Services Agency (FCA). While the financials of the deal were not shared, Binance noted the importance of the acquisition by pointing out this was the first license it was able to obtain in East Asia. The general manager of Binance Japan, Takeshi Chino, said in a statement:
“The Japanese market will play a key role in the future of cryptocurrency adoption. As one of the world’s leading economies with a highly-developed tech ecosystem, it’s already poised for strong blockchain uptake. We will actively work with regulators to develop our combined exchange in a compliant way for local users. We are eager to help Japan take a leading role in crypto.”
The FSA-regulated SEBC, which is based in Tokyo, offers its users trading of 11 cryptocurrencies against the Japanese yen, including Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Cardano (ADA).
Operating in Japan has been tough for Binance, which had to shut down its operations and plans for headquarters in the country in 2018 when it received a notice from the FSA for operating without a license. The Japanese government issued a similar warning to the company in 2021, accusing it of offering crypto exchange services in Japan without a registration.
Despite the downturn of the crypto market, caused by the collapse of the FTX exchange, Binance continues to acquire operating licenses around the world. The popular crypto exchange was able to win similar licenses from Dubai, Spain, and Bahrain, amongst other places, this year alone.