Crypto exchange behemoth, Binance, is poised to relaunch its services in the Japanese market by August, after being forced to exit in 2018 due to regulatory concerns.
Overcoming Past Regulatory Hurdles
In 2018, the Financial Services Agency (FSA) of Japan issued a warning to Binance about operating without a license. Despite claims of ongoing “constructive dialogues” with local regulators, Binance eventually ceased operations in Japan under growing scrutiny from financial regulators.
A New Chapter with Sakura Exchange BitCoin
Binance later acquired Sakura Exchange BitCoin in November 2022 as part of its global expansion strategy. The takeover of Sakura, a regulated digital asset platform, seemed to reveal Binance’s intention to re-establish itself in Japan’s cryptocurrency market.
Supportive Stance of Japan’s Prime Minister
Japan’s Prime Minister Fumio Kishida is pushing for Web3 innovation and new regulations to encourage digital asset operators to do business in Japan. The PM has identified cryptocurrency and Web3 as catalysts for economic growth under his “New Capitalism” policy.
Regulatory Innovations Pave the Way
Complementing Kishida’s vision, the National Tax Agency of Japan recently issued a tax exemption for token issuers. Additionally, Japan’s Virtual and Crypto Assets Exchange Association (JVCEA) introduced rules to simplify token listings on crypto exchanges, thus creating a more conducive environment for companies like Binance to operate.
Binance’s comeback in Japan not only marks a significant milestone in its global expansion strategy but also illustrates the changing attitudes towards digital assets in the country. With the supportive stance of Prime Minister Fumio Kishida and the recent regulatory changes, Japan is progressively fostering an environment conducive to cryptocurrency growth.
Binance’s re-entry into the Japanese market signals a new era for the crypto industry in the country. As Binance starts a new chapter in Japan, it will be interesting to see how the local cryptocurrency landscape evolves and adapts to the renewed presence of this global crypto giant. The entire crypto world will undoubtedly be watching closely as events unfold in the coming months.