On November 30, 2022, Binance, the world's largest cryptocurrency exchange by trading volume, announced the acquisition of 100% of Sakura Exchange Bitcoin (SEBC), a Japanese cryptocurrency exchange service provider regulated by the Financial Services Agency (FSA) of Japan. Through this acquisition, Binance is now positioned to enter the Japanese market as a JFSA-regulated entity.
Acquisition Details
SEBC, headquartered in Tokyo, offers brokerage and consultation services to its clients. The platform currently supports 11 trading pairs, including BTC/JPY, ETH/JPY, BCH/JPY, XRP/JPY, LTC/JPY, ETC/JPY, XEM/JPY, MONA/JPY, ADA/JPY, XYM/JPY, and COT/JPY. Binance stated that by offering Japanese-regulated services through SEBC, it aims to foster a responsible global environment for cryptocurrencies.
Significance of the Japanese Market
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.”
Japan’s FSA enforces strict registration and oversight for cryptocurrency exchanges. Binance had previously exited the Japanese market in 2018 after receiving a warning from the regulator for operating without a license. In June 2021, the FSA issued another warning to Binance for providing crypto exchange services to Japanese residents without registration. The SEBC acquisition resolves these compliance issues and re-establishes Binance’s presence in Japan under full regulatory oversight.
Binance’s Global Compliance Progress
The acquisition marks Binance’s first license in East Asia and is part of the exchange’s broader global expansion strategy. Binance has secured regulatory approvals or authorizations in France, Italy, Spain, Bahrain, Abu Dhabi, Dubai, New Zealand, Kazakhstan, Poland, Lithuania, and Cyprus. By entering the Japanese market in a compliant manner, Binance continues to demonstrate its commitment to working with regulators worldwide.
CEO Changpeng Zhao has repeatedly emphasized that compliance is the foundation for long-term success. This move not only opens up new user growth opportunities but also reinforces Binance’s dedication to adhering to local laws and regulations.