Through purchasing stock in a regulated company or acquiring an operating license, Binance has grown its services during the past year.
Behind The Cryptocurrency Exchange Binance
After purchasing a 100% share in a recognized cryptocurrency service provider in Japan, cryptocurrency exchange Binance intends to reenter the market.
On November 30, Binance CEO Changpeng Zhao stated the cryptocurrency exchange was dedicated to reentering the Japanese market while adhering to regulations. After four years, the purchase of Sakura Exchange BitCoin (SEBC), a company with a license from the Japan Financial Services Agency, would signal the return of international exchange to the Japanese market.
#Binance Acquires JFSA Registered Sakura Exchange BitCoin, Committed to Enter Japan Under Regulatory Compliancehttps://t.co/xfdnaY2hiO
— CZ 🔶 Binance (@cz_binance) November 30, 2022
A Binance official explained the significance of the most recent acquisition as follows:
“We can say that Binance now has its first license in East Asia with the acquisition of SEBC, and since Asia is a market with potential, we hope to expand in other regions.”
Following a notification from the FSA for operating without a license, Binance was forced to cease operations and abandon plans to establish a headquarters in Japan in 2018. In 2021, the Japanese government issued a second warning to the crypto exchange for similar reasons.
Read more: What Is Cryptocurrency, And Which Is The Best Crypto To Buy Now?
Is Binance A Regulated Company?
It is nothing new for Binance to purchase a regulated company to enter the cryptocurrency industry, where obtaining a license is challenging. Binance previously succeeded in reentering the Malaysian market after buying a stake in a licensed company.
The exchange has returned to Singapore, this time owning an 18% ownership in a regulated stock exchange. After regulators denied access to the same, the cryptocurrency exchange could access the sterling payment network in the United Kingdom through a collaboration with Paysafe.
Read more: Factors Influencing The Adoption Rate Of Cryptocurrency In 2022
What are Japan’s Crypto Guidelines?
A spokesman declined to comment when asked if the exchange had also sought a separate license in Japan.
Japan is regarded as one of the first countries to adopt trading regulations for cryptocurrencies. Although rigorous, the Japanese approach to cryptocurrency laws was well received, and G20 countries even approached Japan regarding general crypto guidelines.
Recent regulatory policy easing in Japan has encouraged more cryptocurrency firms, allowed them to thrive, and made coin listings simpler.