Binance, the world’s largest cryptocurrency exchange plans to rejoin the Japanese crypto market after it bought out a 100 percent share of Sakura Exchange BitCoin (SEBC), reports revealed on Wednesday.
Company chief executive Changpeng Zhao said in an announcement that his crypto platform had vowed to reenter the Japanese market and would strictly comply with regulations.
#Binance Acquires JFSA Registered Sakura Exchange BitCoin, Committed to Enter Japan Under Regulatory Compliancehttps://t.co/xfdnaY2hiO
— CZ 🔶 Binance (@cz_binance) November 30, 2022
The acquisition would signal a reentry to the world’s third-largest economy after a four-year pause.
In a statement, a Binance spokesperson told the media: “We can say that the acquisition of SEBC marks Binance’s first license in East Asia, and as Asia is a market with potential, we hope to expand in other regions.”
Rethinking Market Strategies
The news comes after the Japanese Financial Services Agency (FSA) hit the crypto trading firm with a notice for failing to obtain an operating licence. Japanese authorities issued similar warnings in 2021.
Binance has acquired similar stakes in major firms in Malaysia after it faced difficulties entering the Southeast Asian nation’s cryptocurrency markets.
It also resurfaced in Singapore after buying 18 percent of shares in a national stock exchange and regained access to the United Kingdom’s pound payment systems after teaming up with Paysafe due to blocks from regulators.
Location, Location, Regulation
According to Binance, the SEBC acquisition notes Binance’s first East Asian operating licence. It previously secured approvals to conduct business in Bahrain, Italy, France, Abu Dhabi, Spain, New Zealand, Dubai, Poland, Cyprus, Lithuania, and Kazakhstan.
Takeshi Chino, general manager of Binance Japan, said in a statement the Japanese market would “play a key role in the future of cryptocurrency adoption.
He added: “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.”
Hitomi Yamamoto, Chief Executive of SEBC, added that his company was “honored and delighted” to announce the news with Binance.
She concluded: “On top of our effort to prioritize user protection, Binance’s strong compliance system will contribute to building a more compliant atmosphere for users in Japan and help them access key crypto services needed for mass adoption in the future.”
