Global cryptocurrency exchange Binance has announced the full acquisition of Sakura Exchange Bitcoin (SEBC), a Japan-based cryptocurrency exchange regulated by the country's top financial watchdog, the Financial Services Agency (JFSA). The acquisition, confirmed on Wednesday, allows Binance to enter the Japanese market as a regulated entity, a significant step for the exchange that previously faced regulatory warnings in the country.
Acquisition Details and SEBC Background
SEBC, headquartered in Tokyo, provides brokerage and consultation services to its customers. Its trading platform currently supports 11 trading pairs: BTC/JPY, ETH/JPY, BCH/JPY, XRP/JPY, LTC/JPY, ETC/JPY, XEM/JPY, MONA/JPY, ADA/JPY, XYM/JPY, and COT/JPY. By acquiring 100% of SEBC, Binance inherits its JFSA license, effectively resolving past compliance issues and positioning the exchange to legally serve Japanese users.
A Journey from Warning to Compliance
Binance was initially forced to exit the Japanese market in 2018 after the JFSA warned the exchange for operating without a license. In June 2021, the regulator issued another warning, reiterating that Binance was providing services to Japanese residents without proper registration. The acquisition of SEBC marks a complete reversal of that stance, with Binance now fully compliant under Japanese law.
Takeshi Chino, General Manager of Binance Japan, commented: "The Japanese market will play a key role in the future of cryptocurrency adoption. As one of the world’s leading economies with a highly-developed tech ecosystem, it’s already poised for strong blockchain uptake. We will actively work with regulators to develop our combined exchange in a compliant way for local users. We are eager to help Japan take a leading role in crypto."
Expanding Global Regulatory Footprint
This acquisition extends Binance's global regulatory momentum. The exchange has secured approvals or authorizations from regulators in France, Italy, Spain, Bahrain, Abu Dhabi, Dubai, New Zealand, Kazakhstan, Poland, Lithuania, and Cyprus. According to Binance, the SEBC deal represents its first license in East Asia, a crucial region for the future of digital assets.
Binance stated: "Through this acquisition, Binance enters the Japanese market as a Japan Financial Services Agency (JFSA) regulated entity. By offering Japanese-regulated services through SEBC, Binance aims to support a responsible global environment for cryptocurrencies."
The move is expected to boost legitimate crypto adoption in Japan, a country known for its early but cautious embrace of digital currencies. With Binance now operating under Japanese regulatory oversight, the exchange can offer its full suite of products to Japanese users while maintaining compliance. This also sets a precedent for other global crypto platforms seeking to enter the tightly regulated Japanese market.