Binance, the world’s largest cryptocurrency exchange, is set to transition its Japan-based users to a new platform that complies with Japanese regulations. The move comes after the company completed the acquisition of local cryptocurrency exchange Sakura Exchange BitCoin (SEBC) in November 2022. The new platform, to be rebranded as Binance Japan, will be regulated by the Japan Financial Services Agency (JSFA).
To comply with Japanese regulations, Binance plans to restrict services on its global platform Binance.com for local users. As of May 26, 2023, users will no longer be able to open new derivative accounts. From June 9, option trading and Leveraged Tokens (BLVT) will be discontinued. All Japan-based users will be cut off from Binance.com on November 30, 2023, but they will have an opportunity to migrate to the new platform after undergoing a new identity verification process that will be available from August 1, 2023.
Japan residents who complete the new KYC process and hold supported coins will have access to the new Binance Japan after December 1. Users who do not complete the process will only be able to access withdrawals. Binance has requested that users with unpermitted tokens convert them to the supported ones or withdraw them to external wallets. All unpermitted tokens will be automatically converted to Bitcoin (BTC) on November 30, 2023.
Binance’s move to comply with Japanese regulations demonstrates its commitment to regulatory compliance amid shifting regulatory landscapes worldwide. The company’s acquisition of SEBC highlights its strategic expansion plans and shows a willingness to cooperate with local regulators.
In conclusion, Binance’s transition to a new regulated platform in Japan represents a significant step towards greater compliance and cooperation within the cryptocurrency industry. It is hoped that other cryptocurrency exchanges will follow suit, providing users with a safer, more secure, and more compliant environment for trading digital assets.