Binance Seeks Permit to Return to Japan Market After Four Years

Summary:

Binance, the world's biggest cryptocurrency exchange, is seeking a licence to operate in Japan, four years after retreating from the country as it didn't have a permit, according to people familiar with the matter.

The nation's easing approach to crypto and substantial potential for user growth are the key reasons for Binance's renewed interest in the world's third-largest economy, one of the people said.

Japanese Prime Minister Fumio Kishida's agenda for reinvigorating the economy under the rubric of "New Capitalism" includes supporting the growth of so-called Web3 firms. The term "Web3" refers to a vision of a decentralised internet built around blockchains, crypto's underlying technology.

"It would be inappropriate to comment on any conversations with regulators," a Binance spokesperson said in response to request for comments. Binance is "committed to working with regulators and policymakers to shape policies that protect consumers, encourage innovation, and move our industry forward", the spokesperson added. An official at the Financial Services Agency declined to comment.

Last month, Japan's financial regulator proposed relaxing corporate tax rules for crypto assets. Lobbying groups have been calling for changes, saying high corporate taxes cause some firms to relocate to Singapore and elsewhere.

Such steps are somewhat of a contrast to the tougher regulatory oversight emerging in a range of countries after a US$2 trillion wipeout in digital assets from last year's peak led to blowups at crypto hedge funds and lenders.

Binance's billionaire co-founder Changpeng "CZ" Zhao in 2018 ditched a plan to build a base in Japan, following inquiries from the securities regulator that led to an official notice to stop operating in the country without a license. It got a similar warning three years later for not complying with registration rules.

In Asia, Binance is present in countries including Thailand, Malaysia, Indonesia and India through partnerships.

Binance has been the target of regulatory probes in a variety of jurisdictions, including the US. In response, the firm has said it works with authorities and will continue to meet requirements set by officials.

Source: Bloomberg

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Risk Disclosure

The risk of loss in trading financial instruments such as stocks, FX, commodities, futures, bonds, ETFs and crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

No decision to invest should be made without thoroughly conducting due diligence by yourself or consulting with your financial advisors. Our web content might not suit you since we don't know your financial conditions and investment needs. Our financial information might have latency or contain inaccuracy, so you should be fully responsible for any of your trading and investment decisions. The company will not be responsible for your capital loss.

Without getting permission from the website, you are not allowed to copy the website's graphics, texts, or trademarks. Intellectual property rights in the content or data incorporated into this website belong to its providers and exchange merchants.

Recent Searches

Top Searches

Markets

Analysis

User

24/7

Economic Calendar

Education

Data

Binance Seeks Permit to Return to Japan Market After Four Years

Source: Bloomberg

Risk Disclosure