Crypto exchange Binance has acquired regulated crypto exchange platform Sakura Exchange Bitcoin (SEBC) and intends to reenter the Japanese crypto market.
The Japan Financial Services Agency has licensed SEBC, making it a valuable acquisition for Binance. SEBC will terminate its current crypto exchange and brokerage services by May 31 and reopen as Binance Japan after June 2023, according to a report in a local daily. However, the SEBC notice did not announce any official launch date.
Users of the SEBC exchange have until May 28 to withdraw their funds. Any funds remaining in these accounts will be automatically converted to Japanese yen by June 5 and transferred to users’ bank accounts. The users of Binance Japan would have to carry out new identity verification and Know Your Customer checks.
Binance’s reentry into Japan through an acquired entity comes nearly five years after its primary bid to obtain an independent license failed. Binance had to fold its Japan operations in 2018 after financial regulators warned it was operating without regulatory clearance from the authorities.
Binance has faced regulatory compliance issues in over a dozen nations. However, the exchange platform has managed to mend its relations with regulators. In many countries where it has struggled to obtain an independent license, Binance reentered these markets by acquiring stakes in regulated entities.
Before its reentry to the Japanese market, Binance managed to reenter the Malaysian crypto market after acquiring a stake in a regulated exchange platform.
The exchange also reentered the Singapore market with an 18% stake in a regulated stock exchange. Similarly, the crypto platform managed to access the United Kingdom’s sterling payment network with a partnership with Paysafe despite regulators declining access to the same.
Japan is one of the first nations to introduce crypto regulations, and the country has now eased regulatory demands for crypto platforms, making it easier to list new crypto tokens.
This move could be a sign of the Japanese government’s growing acceptance of cryptocurrency as a legitimate investment asset, which may result in more crypto exchanges entering the market. Binance’s acquisition of SEBC will allow the exchange platform to compete in the Japanese crypto market, potentially opening new avenues for crypto traders in the country.
