Binance Enters Japanese Market With SEBC Acquisition
- The acquisition of FSA-regulated Sakura Exchange BitCoin marks Binance’s regulatory-compliant re-entry into the Japanese market.
- The exchange was forced to limit its operations in Japan, and abandon its plans for a regional headquarters, when it received a warning from the FSA in 2018, and once again in 2021.
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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.
- The company said it will be suspending its crypto-backed debit card service in the Middle East on 25 August, and in Latin America by 21 September.
- Although no reason was given for the decision, the company noted that “less than 1% of users” in those regions will be affected by the change.
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- A spokesperson said the change was due to the “changing market and user needs”, and that Binance will now be refocusing its resources on its main products and long-term goals.
- Launched in March 2022, Binance Connect helped crypto businesses connect with the traditional finance system, and supported 50 cryptocurrencies and networks such as Visa and Mastercard.
- The U.K. Financial Conduct Authority continues its crackdown on crypto ATMs in the country, and has disrupted a total of 26 machines since the start of the year.
- The regulator warned the public back in March 2022 that all crypto ATMs in the country were operating illegally, and issued a “shut down or face further action” order.