Binance Acquires Sakura Exchange BitCoin (SEBC)
Binance has finalized an agreement to purchase 100% of Sakura, a Japanese cryptocurrency company, though the details of the transaction remain undisclosed. Sakura holds a license from Japan’s Financial Services Agency (FSA) to trade popular cryptocurrencies such as Bitcoin against the Japanese Yen. This represents the first license Binance has obtained in East Asia, following earlier approvals in France, Spain, Italy, Poland, Bahrain, New Zealand, Kazakhstan, Abu Dhabi, Cyprus, and Lithuania.
Binance has historically been known for disregarding regulatory warnings in East Asia, particularly in Japan. In 2018, Japan’s FSA issued a warning to Binance for operating without proper authorization, and a second warning came in June 2021 for continuing to facilitate trades with Japanese citizens while urging the exchange to comply with regulations. Binance had initially claimed to have exited Japan in 2018 following the initial warnings. The announcement of this deal came soon after Japanese users were left in uncertainty following Binance’s decision to halt new user registrations.
A Strategic Partnership?
The CEO of SEBC, Hitomi Yamamoto, emphasized the company’s excitement about the collaboration with Binance. Sakura’s focus on user protection, combined with Binance’s compliance infrastructure, creates a secure environment for Japanese users to access top-notch cryptocurrency services and foster wider adoption.
Binance is a growing global leader in cryptocurrency exchanges. Its expanded services in the Japanese market could spark greater awareness and interest in the advantages of crypto technology, potentially leading to widespread adoption in Japan. This shift in the country could have a ripple effect on the global cryptocurrency landscape.
Binance’s Commitment to Align with Japanese Regulations
The General Manager of Binance Japan, Takeshi Chino, stated the company’s commitment to working closely with regulators to create a compliant and user-friendly exchange for local Japanese users. Sakura Exchange BitCoin is fully licensed and regulated by Japan’s Financial Services Agency. Binance’s acquisition of a regulated entity makes its reentry into the Japanese market smoother. A Binance spokesperson confirmed that the company conducted thorough due diligence before selecting Sakura as its partner in Japan, adding that the Japanese crypto company shares Binance’s vision for the Japanese market. The spokesperson stressed Japan’s importance in the regional adoption of cryptocurrencies due to its economic stature and emerging potential in the Web 3 sector.
Developments in Japan’s Crypto Scene with Binance’s Deal Ahead
Despite Japan ranking 26th globally in crypto adoption according to a Chainalysis report, the country’s government and authorities are increasingly interested in blockchain technologies. Japan is welcoming foreign startups to contribute to its growing economy. The Japanese government published a white paper on Web 3, calling it the new frontier of the digital economy, which helped attract companies like SettleMint, a Belgium-based Web 3 provider, to expand into Japan. Additionally, Digital Asset Holdings has formed a strategic partnership with the SBI Holdings financial group to help develop enterprise blockchain solutions in Japan.
Binance Faces Regulatory Challenges Across Different Jurisdictions
Binance’s reentry into Japan marks a significant milestone for the crypto exchange, though it has previously encountered regulatory controversies in multiple countries. The company’s stance of not having a central headquarters has led to clashes with financial authorities in the UK, Malaysia, Netherlands, and Malta. Most recently, the Central Bank of the Netherlands fined Binance $3.3 million for operating without a license in the country.
The exchange is now exploring ways to ensure compliance with regulations across various jurisdictions. This May, Binance was granted approval to offer digital asset services in France after meeting regulatory standards, becoming the first European country to approve the exchange. Spain and Italy have also approved Binance’s operations in their respective markets.
