Japan, which in recent months has emerged as a top global contender to become a Web3 hotspot, is attracting industry players to go the extra mile and set up operations in the Asian nation. One of world's biggest crypto exchanges, Binance, is now inching closer to launching a new exchange tailored to the Japanese investor community. The firm plans to launch the upcoming crypto exchange in the world's third biggest economy within the duration of the ongoing summer season of 2023.
Binance, under its founder and CEO Changpeng Zhao, aims to become the most licenced crypto exchange in the world. With this new exchange in Japan, the company has vouched total compliance with the laws of the land.
At first, Binance Japan will only list only thirty cryptocurrencies for spot trading. The company plans to verify that all listed tokens on its exchange in the country are in accordance with local regulations. In the later stages of growing this exchange, Binance will add more digital assets that could be traded or bought in Japan, a report by Bitcoin.com said Monday.
Binance was previously operating in Japan, but had to withdraw due to lack of relevant licences in 2018. At the time, Japan's Financial Services Agency (FSA) had insisted Binance to provide compliance proofs before resuming services in Japan.
Starting November 30, Binance global platform will stop functioning in Japan. Before that, the exchange will migrate its Japanese clientele onto its new platform.
Binance Japan will have a detailed KYC identification process, that users will have to go through in order to use the platform for the trading of digital assets.
The crypto exchange is expected to start shifting users from its global platform to the Japan-centric exchange around August 1.
The stir around the crypto exchange planning a re-entry into the Japanese market had begun back in September last year.
Japan's new prime minister Fumio Kashida has been on a hunt to find ‘new capitalism' solutions to boost the country's economy. In May last year, Kishida had said that Japan would develop and foster a promotional environment for Web3, blockchain, NFTs, and the metaverse.
By the end of 2021, the number of crypto asset accounts set up in Japan reached around 5.48 million, data by Statista claimed.
The Bank of Japan (BoJ), meanwhile, has decided to take careful and thorough analytical approach towards the introduction of its central bank digital currency (CBDC), currently known as the ‘Digital Yen'. Japan is expected to reach a decision on the rollout of Digital Yen by 2026.
Weighing in on the ongoing deliberations around international crypto rules, the financial regulators of Japan have urged global regulatory bodies to finalise that the crypto sector should be treated just as traditional banks are, across the globe.
As per the Japanese authorities, the crypto technology in itself is not to be blamed for risking the financial stability of crypto investors. Rather, it's the lack of rules governing the sector that has not been able to make the sector safe to engage with.
Meanwhile, Coinbase and Kraken are among crypto exchanges that have wrapped up operations in Japan for the time being as part of internal reorganisations.
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