Binance Japan K.K., a local subsidiary of the global cryptocurrency exchange, Binance, is set to commence user onboarding on its freshly inaugurated platform. The announcement comes two years after the Financial Services Agency (FSA), Japan’s financial regulator, warned the exchange of running operations without official permission. Existing Binance users in Japan can shift to the domestic subsidiary starting August 14.
The new platform from Binance Japan expands the crypto landscape in the country by offering 34 tokens for trading, which, as per the announcements, would make it the largest exchange by token offerings in Japan. This catalog includes the native Binance Smart Chain token (BNB), available for trading in Japan for the first time, alongside other well-known tokens such as Bitcoin, Ether, Ada, Algorand, Atom, Avalanche, Solana, and Dogecoin.
Aside from the wide variety of cryptocurrencies, the platform’s services include spot trading, yield generation capabilities through Binance Earn, and access to a non-fungible token (NFT) marketplace. These features aim to make Binance Japan a comprehensive platform catering to diverse needs within the crypto community.
Strategic move and regulatory landscape
The launch of Binance Japan comes as part of a strategy to re-enter the Japanese market after the FSA warning. This re-entry was facilitated by Binance’s acquisition of Sakura Exchange BitCoin, a regulated crypto exchange, in November of last year. Following the acquisition, Sakura Exchange BitCoin was rebranded as Binance Japan Inc.
The decision to resume operations in Japan through a regulated subsidiary underscores Binance’s commitment to adhering to local regulations and building a sustainable web3 ecosystem. It reflects the firm’s intention to “bolster the development of the Japanese digital-asset market,” as their blog post announcement stated.
The move is significant against the backdrop of recent developments in the Japanese crypto market. For instance, major global crypto exchanges such as Coinbase and Kraken have suspended their operations in Japan, attributing the decision to “market conditions”. Meanwhile, the country’s policymakers hinted at the development of more Web3 related policies during the recent WebX conference in Tokyo, suggesting a growing focus on the digital asset market.
Binance’s re-emergence in Japan is seen against the broader context of increased regulatory scrutiny of the exchange’s operations globally. Recently, Binance withdrew its cryptocurrency license application in Germany and lost its euro banking partner. At the same time, its U.S. affiliate, Binance.US, faced a lawsuit from the Securities and Exchange Commission for alleged securities violations. Despite these challenges, expanding services in Japan signifies Binance’s strategy to navigate the increasingly complex global regulatory landscape of cryptocurrencies.