After purchasing a 100% stake in a recognised cryptocurrency service provider in Japan, cryptocurrency exchange Binance aims to reenter the market.
On November 30, Binance CEO Changpeng Zhao stated the cryptocurrency exchange was dedicated to reentering the Japanese market while adhering to regulations. After four years, the acquisition of Sakura Exchange BitCoin (SEBC), a company with a licence from the Japan Financial Services Agency, would signal the return of international exchange to the Japanese market.
Following a notification from the FSA for operating without a licence, Binance was forced to cease operations and abandon plans to establish a headquarters in Japan in 2018. In 2021, the Japanese government issued another warning to the crypto exchange for comparable reasons.
It is nothing new for Binance to purchase a regulated company in order to enter the cryptocurrency industry where it has found it challenging to obtain a licence on its own. Binance previously succeeded in reentering the Malaysian market after buying a stake in a licenced company.
The exchange has made a comeback in Singapore, this time owning an 18% ownership in a regulated stock exchange.
Japan is regarded as one of the first countries to adopt trading regulations for cryptocurrencies. Although rigorous, the Japanese approach to cryptocurrency laws was well received, and G20 countries even approached Japan regarding general crypto guidelines.
