In a recent blog post, Binance confirmed its plans to transition Japanese users of its international cryptocurrency exchange to a specialized local platform designed to comply with national regulations. With this move, Binance follows in the footsteps of previous efforts to cater to local policies in the United States through the creation of Binance.US, which offers lower trading volumes and fewer trading pairs than its main platform.
The dedicated Japanese platform is expected to launch this summer, with further details to be announced closer to the launch date. As part of this transition, Japanese users will see the gradual discontinuation of available products, culminating in a complete loss of access to all spot trading services by November 30th. They will regain full access to the local platform the following day.
Notably, Japanese users are already unable to open derivative accounts on the global platform, and they will lose the ability to open options or leverage token positions in June. By June 23rd, they will be required to close any of their existing positions. Binance explained, “Any open positions relating to Leveraged Tokens and Options will be liquidated automatically and the respective funds will be returned to your wallet.”
Identity verification (KYC) for full access to the new platform will begin in August, with the platform opening to users in December. Those who do not complete verification can still withdraw assets but will not be able to trade them. The local exchange will only support 30 crypto trading pairs, a significant decrease from the 600 available on the main platform. Current users’ supported assets will automatically transfer to the new platform or be converted to BTC for unsupported assets.
Binance’s new Japanese entity is a result of its acquisition of Sakura Bitcoin Exchange (SEBC) in November 2022, and the platform will rebrand under Binance’s banner soon. Licensed by the Japan Financial Services Agency (JFSA), it will be Binance’s first compliant entity in East Asia after failing to enter the Japanese market in 2018 amidst pressure from the national securities regulator.
This move comes after the Japanese government agreed last week to apply the “Travel Rule” to crypto exchanges, requiring firms to provide sender and recipient information for transactions to prevent criminal and terrorist misuse. The decision to create a dedicated platform for Japanese users highlights the ongoing challenges and opportunities within the rapidly-evolving regulatory landscape for cryptocurrencies. While adhering to such regulations may place limitations on the services provided, the creation of localized and compliant platforms can ultimately pave the way for increased adoption and trust within the global cryptocurrency market.
Source: Cryptonews
