Binance,
the leading cryptocurrency exchange and blockchain platform, has announced a
significant transition for its Japan-based customers to a new, locally
compliant platform. Starting from 26 May 2023, residents of Japan are prohibited from creating new derivative accounts on the global platform.
Under the
plan announced by Binance, Japanese residents using the global platform will
gradually transition to a dedicated local version developed to comply fully
with Japanese regulations. This move marks a significant commitment to
compliance and the evolution of the digital asset ecosystem in Japan.
The new
platform will be available this summer, with the launch date and additional
details to be released in the coming months. In the meantime, the existing
services on the global platform will remain accessible until 30 November 2023 for Japan residents.
“We are in
the process of establishing a local exchange dedicated to local users to comply
with all applicable laws in the country. Binance is committed to complying with
the laws and regulations in the jurisdictions where it operates,” Binance commented
in a recent statement.
According
to Binance’s information, the migration process should be fully finalized by
December 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 local
exchange with Japanese authorizations, in order to facilitate its return to
this significant market for digital assets. Finance Magnates reported at
the end of April that Binance Japan would likely launch in June. The
latest 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 Process
and Timelines
Transitioning
to the new platform will involve a new identity verification process (KYC)
starting from August, through November. Japanese residents will be able to use
the global platform until the end of November, even after completing the KYC
process.
The
transition will…
