Binance, the world’s largest digital asset exchange, has set its sights on August 2023 for the relaunch of its crypto exchange services in Japan. This announcement was made by Changpeng Zhao, the Founder of Binance, during a recent video conference held in Tokyo, as reported by Bloomberg.
However, Binance’s path in Japan has not been smooth. The Japanese Financial Services Agency (JFSA) issued warnings to the exchange back in 2018 for operating without authorization in the country. Similar warnings were issued again in 2021.
In an effort to comply with Japanese regulations, Binance acquired a 100% stake in Sakura Exchange BitCoin (SEBC), a digital asset service provider registered with the JFSA. As a result, SEBC announced plans to terminate its operations by the end of May, with the intention to rebrand as ‘Binance Japan’. Nevertheless, Binance has recently faced various setbacks in different jurisdictions.
Despite the challenges, Binance remains committed to its expansion in the Japanese crypto market.
During the aforementioned video conference, Takeshi Chino, Binance’s General Manager in Japan, shared insights into the exchange’s potential introduction of stablecoins in the country. This development comes after Japan passed a bill in June of the previous year, formally defining stablecoins as digital money. Under this law, only licensed banks, registered money transfer agents, and trust companies are permitted to issue stablecoins.
Already, Mitsubishi UFJ (MUFG), a major Japanese banking giant, has taken steps to mint stablecoins tied to foreign currencies, including the US dollar, on its proprietary blockchain, Progmat.
Binance Next Moves
While Binance faces challenges in Japan, the exchange continues to make strides in other Asian countries. Notably, Binance acquired a majority share in GOPAX, a distressed South Korean crypto exchange, earlier this year. This strategic move involved injecting capital into GOPAX to revitalize the struggling platform.
Interestingly, this expansion in South Korea comes two years after Binance shut down its local unit in the country due to low patronage.
In addition, Binance has its sights set on the Thai crypto market. The exchange is planning to launch a crypto exchange in Thailand during the fourth quarter of this year. This endeavor was made possible by obtaining a digital asset service provider license from Thailand’s financial markets regulator back in May.