Binance begins transition to new regulated platform in Japan
- Binance has said that the transition to the new platform is necessary to comply with Japanese regulations.
- Transition to the new platform will involve users undergoing fresh KYC as from August 1, 2023.
- Binanace acquired the Sakura Exchange BitCoin (SEBC) in 2022.
Binance, the world’s leading and largest cryptocurrency exchange, has announced that it will be transitioning its Japan users to a new platform beginning this summer.
According to a notice on the exchange’s website, the new platform will comply with all Japanese regulations.
Migration of all Japan-based users to a new regulated platform comes after the company completed the acquisition of Sakura Exchange BitCoin (SEBC), a local cryptocurrency exchange. The deal was completed in November 2022 and is part of Binance’s expansion strategy amid greater alignment with regulatory compliance.
Binance plans to rebrand SEBC, regulated by the JSFA, to Binance Japan.
Binance to restrict services amid the transition
As part of its transition, Binance has said it will gradually restrict services on its global platform Binance.com for local users. The new restrictions began on May 26, 2023, with users no longer able to open new derivative accounts.
The exchange will also discontinue options trading and Leveraged Tokens (BLVT) as from June 9, before cutting off all Japan-based users from the Binance.com platform on November 30, 2023.
By then, users in the country will have had an opportunity to migrate to the new platform after completing a new identity verification process. According to the notice, the new know your customer (KYC) process will be available as from August 1, 2023, Binance said.
Additionally, Japan residents who complete the KYC as required and hold supported coins will have access to the new Binance Japan after December 1. Users who will not have completed the mandatory verification process will only access withdrawals.
Users with “unpermitted tokens” are asked to convert these to the supported ones (a list of permitted tokens will be shared). If not, they have to withdraw these funds to external wallets. Binance will automatically convert all unpermitted tokens to Bitcoin (BTC) on November 30, according to the notice.