Binance, a beleaguered cryptocurrency exchange, has recently made strides in expanding its reach in Japan. Its Japanese subsidiary, Binance Japan, has launched a new platform dedicated to onboarding new customers in the Asian country. This move comes as Binance faces increasing regulatory challenges from various jurisdictions, prompting its exit from several countries.
In November 2022, Binance entered the Japanese market by acquiring SAKURA Exchange Bitcoin, Inc. (SEBC), a local crypto platform. SEBC, now renamed Binance Japan, is one of the largest exchanges in Japan and is regulated by the country’s Financial Services Agency (FSA). With this acquisition, Binance aims to establish a sustainable Web3 ecosystem in Japan.
Binance Japan’s new platform will provide Japanese users with access to various digital assets. The exchange plans to list 34 cryptocurrencies, including popular options like Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE). Notably, Binance’s BNB token will also make its trading debut in Japan, despite regulatory challenges it faces in the U.S., where it has been labeled a security by the Securities and Exchange Commission (SEC).
In addition to spot trading services, Binance Japan will offer Earn products and an NFT Marketplace. However, the platform will not provide derivatives trading services for retailers.
Binance Japan’s launch marks a significant milestone for Binance as it faces regulatory troubles in multiple jurisdictions. Japan, known for its strict crypto regulations, has provided a more stable environment for cryptocurrency exchanges. These regulations were particularly crucial in safeguarding the funds of FTX Japan customers during the parent company’s bankruptcy.
Despite its struggles elsewhere, Binance has managed to establish a presence in Japan through Binance Japan. However, the exchange’s difficulties in obtaining appropriate licenses have led to its exit from countries like the Netherlands, Cyprus, Germany, and the U.K. These challenges have significantly impacted Binance’s market dominance, with its spot market share declining from 64% to 50% earlier this year, according to data from blockchain analytical firm Kaiko.
Binance Japan’s dedicated platform for Japanese customers marks an important step for the embattled exchange in expanding its business. Despite facing regulatory challenges in various jurisdictions, Binance has found a foothold in Japan, thanks to the acquisition of SEBC. The launch of Binance Japan provides Japanese users with access to a wide range of digital assets and services.
It remains to be seen how Binance will navigate its regulatory hurdles and regain its market dominance. The success of Binance Japan will likely depend on its ability to operate within Japan’s strict crypto regulations while providing value to its customers. Only time will tell if Binance can overcome its challenges and thrive in the evolving cryptocurrency landscape.
