Binance also revealed that the new platform will be available this summer, with the official launch date and more details arriving in the coming months. The company will also discontinue its crypto services for Japanese residents through its global platform by 30 November 2023 as part of its transition to Binance Japan. Users of this global platform will be able to migrate to the new platform after 1 August 2023. However, they will need to go through a new identity verification process (KYC).
Binance entered the Japanese market in December 2022 by acquiring Sakura Exchange BitCoin (SEBC). SEBC is a JFSA-registered crypto exchange that also offers consultation services in addition to its brokerage service. By acquiring 100% of SEBC, Binance has entered the Japanese market as a Japan Financial Services Agency (JFSA) regulated entity. At the time, Binance expressed its intentions to support a responsible global environment for cryptocurrencies by providing Japanese-regulated services through SEBC.
Binance officials emphasised that, as far as cryptocurrency adoption is concerned, the Japanese market has an important role to play, particularly in the context of its highly developed tech ecosystem that gears it up for a strong blockchain uptake.
In September 2022, the Japanese government published a white paper that explored the potential implementation of blockchain technologies and CBDCs into the country’s existing governance frameworks. The paper has since been approved and the East Asian country has been adopting cryptocurrency at a rapid pace, which caused Japanese companies such as Toyota, Sony, and NTT to express their willingness to adopt various decentralised offerings.
As a member of the G7, Japan will also enforce the Financial Action Task Force’s Travel Rule, which mandates that financial institutions processing crypto transfers over USD 3,000 should disclose customer information with the recipient exchange or institution.
According to sanctionscanner.com, Japan has one of the most advanced regulatory environments for cryptocurrencies, as the country recognises Bitcoin and other virtual assets as legitimate property under the Payment Services Act (PSA).
Due to this legislation, cryptocurrency exchanges operating in Japan must adhere to conventional Anti Money Laundering/Combating the Financing of Terrorism (AML/CFT) guidelines. In Japan, VASPs that offer exchange services need to adhere to strict KYC (Know-Your-Customer) rules and keep a close eye on transactions that might be considered questionable.
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