By Michael Scott
Binance pursues service expansion by applying for an operating license and acquiring an ownership stake in regulated cryptocurrency entities.
Such is evident from the November 30 announcement of Sakura Exchange Bitcoin (SEBC). The takeover confirms Binance’s plans to break the four-year absence from the Japanese crypto space.
Conveying the official announcement via Twitter, chief executive Changpeng Zhao expressed confidence in Binance’s commitment to regulatory compliance. The re-entry of the world’s top-ranked blockchain
ecosystem through 100% ownership of SEBC is the initial license attained by the firm within East Asia.
Acquiring SEBC is considered a critical entry vehicle being a registered provider of crypto exchange services and licensed by the Japan Financial Services Agency (JFSA).
Binance Approach to Overcome Restricted Crypto Markets
Takeshi Chino, the Binance representative in Japan, considers the re-entry to the Japanese market will yield a solid footing to expand and leverage the untapped crypto opportunities in Asia. Binance exited Japan in 2018 following an FSA notice for running unlicensed operations. Also, the Zhao-led crypto firm received a warning from the Japanese government citing similar grounds.
Binance has recently sought entry into new crypto markets by acquiring regulated entities, particularly in markets it encounters challenges of acquiring independent licenses. Earlier, it acquired a strategic stake in MX Global, thus re-entering the Malaysian market. Also, it acquired an 18% stake in Hg Exchange (HGX) to reenter the Singapore market. Zhao replicated the strategy in the UK by partnering with Paysafe to overcome Binance’s declined access.
Strategic Acquisition of SEBC
Chino added that Japanese re-entry would benefit Binance, given its active role in regional cryptocurrency adoption. He acknowledged that Japan is among the leading global economies backed by a developed tech ecosystem that would translate to strong blockchain uptake.
Chino echoed Zhao’s perspective that Binance will actively prioritize working with JFSA to harmonize the combined exchange while prioritizing compliance with local users’ desires.
SEBC is a strategic acquisition for Binance, given its consultation and brokerage services expertise. Besides, the Tokyo-based exchange support portfolio has 11 trading pairs with JPY, including BTC, ETH, XRP, LTC, ETC, XEM, XYM, COT, ADA, MONA, and BCH.
SEBC chief executive Hitomi Yamamoto expressed confidence in replicating Binance reputation of prioritizing user protection. Further, Yamamoto considered that the robust compliance system initiated by Binance constitutes a solid basis to nurture a compliant atmosphere for users across Japan.
Also, he identified the acquisition would avail critical crypto services infrastructured desired to trigger mass adoption in the country.