With the acquisition of a licensed crypto service provider in the country, Binance will have a fresh start in Japan years after the crypto exchange was warned by regulators about its unauthorised activities
The world’s largest crypto exchange, owned by entrepreneur Changpeng Zhao, announced it has acquired a 100% stake in Sakura Exchange BitCoin (SEBC), a Japan Financial Services Agency-licensed business. It marks a second attempt by the crypto giant to enter the market – now under regulatory compliance.
In 2018, Binance shut its operations in Japan as FSA warned the company it should obtain a license to continue business in Japan. The Japanese government reinstated the warning on similar grounds in 2021.
Instead of receiving a separate license, the crypto exchange chose to buy a stake in an already regulated entity. SEBC currently supports 11 trading pairs. Besides, the Tokyo-based exchange offers its customers consultation services in addition to brokerage.
For Binance, the acquisition is an important step. Not only does it provide access to “one of the world’s leading economies with a highly-developed tech ecosystem” but it also is Binance’s first license in East Asia. The company eyes the Asian market as having a lot of potential for crypto adoption. Thus, Binance hopes to expand its trading services to other regions in the future.