• Sakura Exchange Bitcoin Company (SEBC) announced plans to launch a new service Binance Japan after June 23.
• The new Binance Japan will require users to perform new KYC and no SEBC account data will be carried forward.
• Japanese regulators have imposed strict regulations against crypto exchanges to protect investors.
Binance Japan Launch
Sakura Exchange Bitcoin Company (SEBC) announced plans to launch a new service, Binance Japan, after June 23. The Provisional Binance Japan service will replace SEBC’s current exchange services, which will close by May 31.
The new Binance Japan will require users to perform new KYC identity verification and no SEBC account data will be carried forward. Originally, Binance was unable to offer account opening options for Japanese residents but it is now unclear whether they still can access Binance Global after the launch of the new platform in Japan.
Japanese regulators have imposed very strict regulations against crypto exchanges to protect investors. An exchange must store its assets in cold wallets while customers’ fiat should remain in a bank trust or Japanese trust company. This has caused several questions about whether the exchange aims to become a monopoly as some believe that Binance is the biggest gainer of FTX’s collapse and could become “the Amazon of crypto”.
Regulators have warned Binance Exchange of illegally operating in Japan on several occasions. In March 2018, Japan’s Financial Services Agency (FSA) warned Binance for illegally engaging Japanese residents and reiterated this warning again in 2021 claiming that the exchange was operating without registration. A virtual currency exchange must obtain business registration and approval from FSA before operating in Japan.
These developments began after the acquisition of SEBC by the Bince Network last November when the company was unable to offer account opening options for Japanese residents due to regulatory measures in place at the time. The release did not share further details about the features offered by Biance Japan however reports indicate that only 11 pairs of cryptocurrency assets are currently hosted by SEBC