Binance Unveils Compliant Japan New Platform Amidst Global Expansion
Key Points:
- Binance is to launch a compliant platform in Japan in August.
- Acquisition of Sakura Exchange BitCoin marks Binance’s entry into the East Asian market.
- Meanwhile, Binance.US faces wash trading scrutiny amid global regulatory challenges.
In an announcement made via video at a conference in Tokyo on Tuesday, Binance CEO Changpeng Zhao (CZ) revealed that the cryptocurrency exchange giant is all set to introduce its comprehensive services on a new platform tailored specifically for Japan. The launch is scheduled for August this year, Bloomberg reported.
This development follows Binance’s acquisition of Sakura Exchange BitCoin (SEBC), a cryptocurrency exchange service provider based in Japan, in November of the previous year. The acquisition was a strategic move to establish its presence in the Japanese market while adhering to the regulations set forth by the Japan Financial Services Agency (JFSA). However, the terms of the deal were not publicly disclosed.
Notably, the move marks a significant milestone for Binance, as it secures the exchange’s first license in East Asia through SEBC’s existing registration with the JFSA.
In line with the company’s commitment to compliance, the exchange officially stated in May that it was developing a platform specifically designed to cater to the Japanese market while ensuring full adherence to local rules and regulations. As part of this initiative, it announced that it would discontinue its existing global platform’s services for Japanese residents, effective from November 30. Users currently operating on the global platform will be given the option to transition to the new local platform. To facilitate the migration process, Binance will introduce a new identity verification system after August 1.
The SEBC platform, registered with the JFSA, offers not only brokerage services but also consulting services to its customers. Presently, SEBC supports trading in 11 pairs, including popular cryptocurrencies like BTC/JPY, ETH/JPY, BCH/JPY, XRP/JPY, LTC/JPY, ETC/JPY, XEM/JPY, MONA/JPY, ADA/JPY, XYM/JPY, and COT/JPY.
Despite Binance’s expansion into Japan and efforts to comply with local regulations, the exchange is no stranger to regulatory scrutiny globally. Binance.US, a separate entity under the Binance brand, has been under intense regulatory investigation in various jurisdictions.
Recently, the Wall Street Journal reported that some of Binance.US’s initial cryptocurrency trades involved wash trading, wherein trades are conducted internally to manipulate trading volumes. The U.S. Securities and Exchange Commission (SEC) has been investigating allegations of wash trading against the company. The SEC claims that the US subsidiary inflated trading volumes through accounts linked to Changpeng Zhao, such as Sigma Chain. It is alleged that wash trading between Sigma Chain accounts and executive accounts accounted for a significant portion of one cryptocurrency’s trading volume.
The SEC also raised concerns about the lack of trading surveillance on Binance.US until at least February 2022. Memos between executives revealed that no action would be taken against self-trading without regulatory pressure.
Additionally, a 2019 study cited by the Wall Street Journal showed that wash trading accounted for over 46% of its global trading volume during the surveyed period, though the report did not include data on Binance’s U.S. arm due to its ongoing launch.
As the exchange prepares to embark on its new venture in Japan, the exchange will continue to address regulatory challenges in various jurisdictions while ensuring compliance with local laws. The launch of the dedicated platform for Japanese users is a significant step towards strengthening Binance’s presence in the region and providing enhanced services to its growing user base in Japan.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Read more...
Coincu News
Read More
Binance Unveils Compliant Japan New Platform Amidst Global Expansion
Key Points:
- Binance is to launch a compliant platform in Japan in August.
- Acquisition of Sakura Exchange BitCoin marks Binance’s entry into the East Asian market.
- Meanwhile, Binance.US faces wash trading scrutiny amid global regulatory challenges.
In an announcement made via video at a conference in Tokyo on Tuesday, Binance CEO Changpeng Zhao (CZ) revealed that the cryptocurrency exchange giant is all set to introduce its comprehensive services on a new platform tailored specifically for Japan. The launch is scheduled for August this year, Bloomberg reported.
This development follows Binance’s acquisition of Sakura Exchange BitCoin (SEBC), a cryptocurrency exchange service provider based in Japan, in November of the previous year. The acquisition was a strategic move to establish its presence in the Japanese market while adhering to the regulations set forth by the Japan Financial Services Agency (JFSA). However, the terms of the deal were not publicly disclosed.
Notably, the move marks a significant milestone for Binance, as it secures the exchange’s first license in East Asia through SEBC’s existing registration with the JFSA.
In line with the company’s commitment to compliance, the exchange officially stated in May that it was developing a platform specifically designed to cater to the Japanese market while ensuring full adherence to local rules and regulations. As part of this initiative, it announced that it would discontinue its existing global platform’s services for Japanese residents, effective from November 30. Users currently operating on the global platform will be given the option to transition to the new local platform. To facilitate the migration process, Binance will introduce a new identity verification system after August 1.
The SEBC platform, registered with the JFSA, offers not only brokerage services but also consulting services to its customers. Presently, SEBC supports trading in 11 pairs, including popular cryptocurrencies like BTC/JPY, ETH/JPY, BCH/JPY, XRP/JPY, LTC/JPY, ETC/JPY, XEM/JPY, MONA/JPY, ADA/JPY, XYM/JPY, and COT/JPY.
Despite Binance’s expansion into Japan and efforts to comply with local regulations, the exchange is no stranger to regulatory scrutiny globally. Binance.US, a separate entity under the Binance brand, has been under intense regulatory investigation in various jurisdictions.
Recently, the Wall Street Journal reported that some of Binance.US’s initial cryptocurrency trades involved wash trading, wherein trades are conducted internally to manipulate trading volumes. The U.S. Securities and Exchange Commission (SEC) has been investigating allegations of wash trading against the company. The SEC claims that the US subsidiary inflated trading volumes through accounts linked to Changpeng Zhao, such as Sigma Chain. It is alleged that wash trading between Sigma Chain accounts and executive accounts accounted for a significant portion of one cryptocurrency’s trading volume.
The SEC also raised concerns about the lack of trading surveillance on Binance.US until at least February 2022. Memos between executives revealed that no action would be taken against self-trading without regulatory pressure.
Additionally, a 2019 study cited by the Wall Street Journal showed that wash trading accounted for over 46% of its global trading volume during the surveyed period, though the report did not include data on Binance’s U.S. arm due to its ongoing launch.
As the exchange prepares to embark on its new venture in Japan, the exchange will continue to address regulatory challenges in various jurisdictions while ensuring compliance with local laws. The launch of the dedicated platform for Japanese users is a significant step towards strengthening Binance’s presence in the region and providing enhanced services to its growing user base in Japan.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Read more...
Coincu News
Read More