Binance, a major cryptocurrency exchange, is preparing to launch “Binance Japan” next month by rebranding the Japanese exchange it acquired last year. In November 2020, Binance purchased shares in Sakura Exchange BitCoin (SEBC) trading platform, which has now been renamed under the Binance brand, according to an official SEBC notice and Japanese media outlet CoinPost.
Existing SEBC Customers Must Rejoin Platform from Scratch
Existing SEBC customers will have to start from scratch as Binance has announced that all new customers, including those with SEBC accounts, will need to complete new Know Your Customer (KYC) protocols. SEBC announced that it would halt operations under its own banner on May 31, 2011, and asked its customers to sell or withdraw their cryptoassets before the end of the month.
Binance’s Return to Japan
Binance was forced to exit Japan in 2018 when the nation rolled out a permit system for crypto exchanges. However, the exchange remains popular among Japanese users who are obliged to use the global Binance platform. Japan-based sources began reporting in September last year that Binance was looking for a way back into the market. Buying SEBC, a license-holding domestic player, has allowed Binance to sidestep the permit process.
Binance’s Expansion in East Asia Market
Binance has also attempted a similar strategy in South Korea, where it swooped in for a deal to finance GOPAX, a smaller South Korean crypto exchange. GOPAX is one of just five platforms with the operating permit and banking partnership deal needed to offer KRW trading. A number of current or former Binance officials have been appointed to senior positions in GOPAX, although Binance is yet to complete a takeover officially. The firm will be particularly keen to return to Japan following the exits of FTX and Coinbase, both of which previously operated trading platforms in the nation.
In conclusion, Binance is set to launch Binance Japan next month by rebranding the SEBC exchange it acquired last year. Existing SEBC customers will have to rejoin the platform from scratch, and all new customers will need to complete new KYC protocols. By buying SEBC, Binance has sidestepped the permit process that forced it out of Japan in 2018. Binance is also expanding its reach in the East Asia market, with a recent deal to finance GOPAX, a smaller South Korean crypto exchange.