Binance enters Japanese market after acquiring regulated crypto exchange in the country

November 30, 2022 10:15 pm

Cryptocurrency exchange Binance entered the Japanese market after acquiring a 100% stake in Sakura Exchange BitCoin (SEBC), a crypto exchange service registered in Japan.

In a twitter post on Nov.30, Binance CEO Changpeng Zhao said Binance was committed to enter Japan under regulatory compliance.

Takeshi Chino, general manager of Binance Japan, said, "We will actively work with regulators to develop our combined exchange in a compliant way for local users."

The acquisition marks the re-entry of Binance in the Japanese market after four years.

In 2018, Binance had to close its operations and open a new office in Japan in 2018 after a Financial Services Agency (FSA) notice for operating without a license. In 2021, FSA issued a similar warning to Binance, accusing the company of offering crypto exchange services in the country without registration.

Binance has done similar move to enter a crypto market by acquiring a regulated entity. In May, Binance re-enter the Malaysian market after acquiring a stake in MX Global, a regulated digital asset trading platfrom in the country.

Similarly, Binance, has acquired a stake in a local private securities exchange, Hg Exchange (HGX) to re-enter the Singapore market last year.

Binance was being investigated by several agencies in countries including Singapore, US, UK and Japan.

Last year, the Financial Conduct Authority (FCA) announced to ban Binance from conducting any regulated activity in U.K, adding Binance was not authorized to operate as crypto business in the country.

Before Binance acquired a stake in Hg Exchange, Singapore’s Monetary Authority Services (MAS) has decided to review Binance’s application for a license to provide digital payment token services.

MAS said Binance can continue its operation in Singapore while it is reviewing its application. However, the regulator said it will review Binance’s application based on high standards.