Binance,the leading cryptocurrency exchange and blockchain platform, has announced asignificant transition for its Japan-based customers to a new locallycompliant platform. Starting from 26 May 2023, residents of Japan are prohibited from creating new derivative accounts on the global platform.
Under theplan announced by Binance, Japanese residents using the global platform willgradually transition to a dedicated local version developed to comply fullywith Japanese regulations. This move marks a significant commitment tocompliance and the evolution of the digital asset ecosystem in Japan.
The newplatform will be available this summer, with the launch date and additionaldetails to be released in the coming months. In the meantime, the existingservices on the global platform will remain accessible until 30 November 2023 for Japanese residents.
“We are inthe process of establishing a local exchange dedicated to local users to complywith all applicable laws in the country. Binance is committed to complying withthe laws and regulations in the jurisdictions where it operates,” Binance commentedin a recent statement.
Accordingto Binance’s information, the migration process should be fully finalized byDecember 2023. The information was confirmed on Twitter by the exchange's CEO, Changpeng Zhao.
Binance kicks off transition to new platform in Japan https://t.co/vsQ2z3dLBc
— CZ 🔶 Binance (@cz_binance) May 27, 2023
Due to regulatory limitations, Binance ceased its local operations in Japan several years ago. However, last year it acquired Sakura Exchange BitCoin, a localexchange with Japanese authorizations, in order to facilitate its return tothis significant market for digital assets. Finance Magnates reported atthe end of April that Binance Japan would likely launch in June. Thelatest reports from the exchange confirm this information.
Binance re-enters Japan a few months after its international competitors, Coinbase and Kraken, decided to leave the local market, citing 'weak crypto prices' and 'market volatility.' Kraken's local subsidiary Payward Asia was deregistered from the Financial Services Agency in January 2023.
Binance Transition Processand Timelines
Transitioningto the new platform will involve a new identity verification process (KYC)starting from August, through November. Japanese residents will be able to usethe global platform until the end of November, even after completing the KYCprocess.
Thetransition will be followed by a gradual restriction of global platformfeatures for Japanese users, starting with the prohibition of opening newderivative accounts already in force. Trading in Optionsand Leveraged Tokens (BLVT) will cease on 23 June 2023, and futures leveraged will be limited to 10:1 from the same date.
“BinanceJapan will not provide derivatives services at the initial stage to comply withlocal regulations. In the future, we plan to continue to enrich our serviceofferings in Japan and will work closely with regulators to possibly providederivatives services in a fully compliant manner,” the company added.
The BinanceJapan platform will initially offer spot trading for over 30 tokens, with theexact list to be confirmed. The platform will automatically transfer any permittedtokens for users who complete the KYC process, allowing them to start using thelocal platform from December 2023.
Resident users of Japan that possess unpermitted tokens are advised to convert them topermitted tokens or withdraw them through an external wallet. Any remainingunpermitted tokens will be automatically converted to BTC on 30 November 2023.
Regulatory Challenges
During therecent Financial Times' Crypto and Digital Assets Summit, Patrick Hillmann, the Chief Strategy Officer of Binance, revealed that the crypto exchange is seekingregulation in the United Kingdom to respond to the regulatory challenges ithas faced in the United States.
In the past, Binance had encountered difficulties with the Financial Conduct Authority (FCA), the UK's financial market regulator, and even withdrew its registrationrequests along with other crypto companies.
Meanwhile,Binance has decided to close its operations in Canada, citingregulatory requirements related to stablecoins and investor limits as thereasons for its departure.
Nevertheless,the company has successfully established a new subsidiary on a different front.Gulf Binance, a joint venture between Binance and Gulf Innova, has obtained adigital asset operator license from Thailand's Ministry of Finance. Gulf Innovais a subsidiary of Gulf Energy Development, which oversees the firm's digitalbusiness.
Binance,the leading cryptocurrency exchange and blockchain platform, has announced asignificant transition for its Japan-based customers to a new locallycompliant platform. Starting from 26 May 2023, residents of Japan are prohibited from creating new derivative accounts on the global platform.
Under theplan announced by Binance, Japanese residents using the global platform willgradually transition to a dedicated local version developed to comply fullywith Japanese regulations. This move marks a significant commitment tocompliance and the evolution of the digital asset ecosystem in Japan.
The newplatform will be available this summer, with the launch date and additionaldetails to be released in the coming months. In the meantime, the existingservices on the global platform will remain accessible until 30 November 2023 for Japanese residents.
“We are inthe process of establishing a local exchange dedicated to local users to complywith all applicable laws in the country. Binance is committed to complying withthe laws and regulations in the jurisdictions where it operates,” Binance commentedin a recent statement.
Accordingto Binance’s information, the migration process should be fully finalized byDecember 2023. The information was confirmed on Twitter by the exchange's CEO, Changpeng Zhao.
Binance kicks off transition to new platform in Japan https://t.co/vsQ2z3dLBc
— CZ 🔶 Binance (@cz_binance) May 27, 2023
Due to regulatory limitations, Binance ceased its local operations in Japan several years ago. However, last year it acquired Sakura Exchange BitCoin, a localexchange with Japanese authorizations, in order to facilitate its return tothis significant market for digital assets. Finance Magnates reported atthe end of April that Binance Japan would likely launch in June. Thelatest reports from the exchange confirm this information.
Binance re-enters Japan a few months after its international competitors, Coinbase and Kraken, decided to leave the local market, citing 'weak crypto prices' and 'market volatility.' Kraken's local subsidiary Payward Asia was deregistered from the Financial Services Agency in January 2023.
Binance Transition Processand Timelines
Transitioningto the new platform will involve a new identity verification process (KYC)starting from August, through November. Japanese residents will be able to usethe global platform until the end of November, even after completing the KYCprocess.
Thetransition will be followed by a gradual restriction of global platformfeatures for Japanese users, starting with the prohibition of opening newderivative accounts already in force. Trading in Optionsand Leveraged Tokens (BLVT) will cease on 23 June 2023, and futures leveraged will be limited to 10:1 from the same date.
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“BinanceJapan will not provide derivatives services at the initial stage to comply withlocal regulations. In the future, we plan to continue to enrich our serviceofferings in Japan and will work closely with regulators to possibly providederivatives services in a fully compliant manner,” the company added.
The BinanceJapan platform will initially offer spot trading for over 30 tokens, with theexact list to be confirmed. The platform will automatically transfer any permittedtokens for users who complete the KYC process, allowing them to start using thelocal platform from December 2023.
Resident users of Japan that possess unpermitted tokens are advised to convert them topermitted tokens or withdraw them through an external wallet. Any remainingunpermitted tokens will be automatically converted to BTC on 30 November 2023.
Regulatory Challenges
During therecent Financial Times' Crypto and Digital Assets Summit, Patrick Hillmann, the Chief Strategy Officer of Binance, revealed that the crypto exchange is seekingregulation in the United Kingdom to respond to the regulatory challenges ithas faced in the United States.
In the past, Binance had encountered difficulties with the Financial Conduct Authority (FCA), the UK's financial market regulator, and even withdrew its registrationrequests along with other crypto companies.
Meanwhile,Binance has decided to close its operations in Canada, citingregulatory requirements related to stablecoins and investor limits as thereasons for its departure.
Nevertheless,the company has successfully established a new subsidiary on a different front.Gulf Binance, a joint venture between Binance and Gulf Innova, has obtained adigital asset operator license from Thailand's Ministry of Finance. Gulf Innovais a subsidiary of Gulf Energy Development, which oversees the firm's digitalbusiness.
