Binance is creating a separate crypto platform for its users in Japan to comply with local regulations.
The new platform will be launched in the summer, and users will be transitioned gradually by discontinuing certain products until November 30.
After that, they will lose access to spot trading services but can switch to the local Japanese platform the next day.
Users in Japan have been restricted from opening derivative accounts on Binance’s global platform. They will also lose the ability to open new options or leverage token positions in June and must close any existing positions by June 23. Any remaining open positions will be liquidated, and the funds will be returned to their wallets.
From August, Japanese users can complete identity verification (KYC) to gain full access to the new platform in December. Those who haven’t completed KYC can still withdraw their assets but won’t be able to trade them.
Binance’s local exchange in Japan will support only 30 crypto trading pairs, which is significantly fewer than the 600 available on the main platform.
Any supported assets held by current users will be automatically transferred to the new platform, while unsupported assets will be converted to Bitcoin (BTC) starting from November 30.
Binance’s Japanese entity is the result of its acquisition of Sakura Bitcoin Exchange (SEBC) in November 2022, and SEBC will rebrand under the Binance name.
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The platform is licensed by the Japan Financial Services Agency (JFSA) and marks Binance’s first compliant entity in East Asia.
Previously, Binance faced regulatory challenges when attempting to enter the Japanese market in 2018. Last week, the Japanese government agreed to implement the “Travel Rule” for crypto exchanges, requiring them to provide sender and recipient information for transactions to prevent illegal activities.
Important:Â This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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