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Binance Readies Japan-Focused Crypto Platform, Set for Summer Launch

source-logo  cryptonews.com 30 May 2023 12:55, UTC

Binance has begun the process of transitioning Japanese users of its international crypto exchange to a specialized local platform, the company confirmed in a blog post on Friday.

The separate exchange is designed to comply with local regulations that the international exchange cannot meet.

Binance has already launched similar entities in countries like the United States such as Binance.US, which supports much lower volume and fewer trading pairs than the main branch.

“The new platform will be available this summer,” wrote Binance. “We will inform the launch date and provide further details in the coming months.”

Japan users will see their available products gradually discontinued until November 30, at which point they’ll lose access to all spot trading services.

They can fully access the local Japanese platform the following day.

In the meantime, such users have already been barred from opening derivative accounts on the global platform.

They’ll also lose the ability to open new options or leverage token positions in June, and will be forced to close any existing positions by June 23.

“Any open positions relating to Leveraged Tokens and Options will be liquidated automatically and the respective funds will be returned to your wallet,” explained the firm.

Beginning in August, Binance’s Japanese users can start completing identity verification (KYC) to gain full access to the new platform in December. Those who haven’t will still be able to withdraw their assets, but not trade them.

The local exchange will only support 30 crypto trading pairs – a far cry from the 600 available with the main branch. Any supported assets held by current users will automatically be transferred into their accounts on the new platform, whereas unsupported assets will be converted into Bitcoin (BTC) as of November 30.

Binance’s Japanese entity is a follow-up to its acquisition of Sakura Bitcoin Exchange (SEBC) in November 2022. The latter exchange plans to rebrand under Binance’s banner on Wednesday.

Licensed by the Japan Financial Services Agency (JFSA), the platform will be Binance’s first compliant entity in East Asia after failing to enter the Japanese market in 2018 due to pressures from the national securities regulator.

The Japanese government agreed last week to begin applying the “Travel Rule” to crypto exchanges.

The rule will require crypto trading firms to provide sender and recipient information for crypto transactions, in order to “prevent criminal and terrorist misuse.”