Binance acquired locally regulated crypto exchange Sakura in November 2022 as part of expansion plans into the Asian market.
The company said full services will begin for Japanese users in August and the platform would be fully compliant with local financial rules.
Rhetoric from Japan’s Prime Minister Fumio Kishida suggests a boon for digital asset operators looking to set up shop in the country.
Major crypto exchange Binance said its Japanese division will begin full operation for local users by August this year, per a report from Bloomberg.
The company headed by CEO and founder Changpeng ‘CZ’ Zhao acquired Sakura Exchange BitCoin (SEBC), a locally regulated digital asset platform, last year in November.
Sakura’s acquisition was sealed by an undisclosed sum and opened a route for Binance to re-enter the Japanese market through a platform regulated by the country’s Financial Services Agency (FSA).
The move also marked Binance’s first foothold in Japan since 2018 after CZ’s company was shown the door due to regulatory compliance issues.
Per today’s announcement, Binance Japan operating through SEBC would function as a fully compliant platform offering crypto and digital asset services to users in Japan.
Furthermore, the development is buoyed by rhetoric from Japan’s Prime Minister Fumio Kishida who has hinted at pathways for crypto operators to set up shop in the country and expanding the local digital currency ecosystem.
In recent months, policymakers have revised token listing procedures to accommodate more coins and mulled rules to allow crypto businesses comply with financial rules.
Binance Expansion Across Jurisdictions
While Binance plans to resurface in the Japanese market, the company has lost some ground in Europe and the U.S. amid regulatory crackdowns.
The crypto exchange heavyweight exited Cyprus and saw its derivatives license revoked by Australia’s securities watchdog (ASIC). Binance France also experienced a raid on its Paris office after suspicions of money laundering activities.
Several executives like CSO Patrick Hillmann left the company amid a lawsuit from the U.S. SEC, although departing leaders insisted that their exits had nothing to do with allegations against the crypto exchange or CEO Zhao.