Binance Requests Permission To Enter Japan Market Four Years Later

According to industry sources, Binance, the world’s largest cryptocurrency exchange, is seeking a license to operate in Japan, four years after withdrawing from the country due to a lack of a permit.

Per one of the sources, Binance’s renewed interest in the world’s third-largest economy is due to the country’s lax approach toward cryptocurrency and the substantial potential for user growth.

Under the banner of “New Capitalism,” Japanese Prime Minister Fumio Kishida’s agenda for reviving the economy includes support for the growth of so-called Web3 firms. The term “Web3” refers to a vision of a decentralized internet based on blockchains, the underlying technology of cryptocurrency. Under the banner of “New Capitalism,” Japanese Prime Minister Fumio Kishida’s agenda for reviving the economy includes support for the growth of so-called Web3 firms. The term “Web3” refers to a vision of a decentralized internet based on blockchains, the underlying technology of cryptocurrency.

In response to a request for comment, a Binance spokesperson stated, “It would be inappropriate to comment on any conversations with regulators.” According to the spokesperson, Binance is “committed to working with regulators and policymakers to shape policies that protect consumers, encourage innovation, and move our industry forward.” A Financial Services Agency official refused to comment.

Japan’s financial regulator proposed relaxing corporate tax rules for crypto assets last month. Lobbying groups have called for changes, claiming that high corporate taxes drive some businesses to relocate to Singapore and elsewhere.

Japan’s actions contrast with the tougher regulatory oversight emerging in some countries following a $2 trillion wipeout in digital assets from last year’s peak, which resulted in blowups at crypto hedge funds and lenders.

Changpeng “CZ” Zhao, the billionaire co-founder of Binance, abandoned a plan to establish a base in Japan in 2018 after receiving a formal notice to cease operations in the nation without a license as a result of inquiries from the securities regulator. Three years later, for failing to follow registration regulations, it received a comparable warning.

Through partnerships, Binance is present in several Asian nations, including Thailand, Malaysia, Indonesia, and India. Regulatory inquiries into Binance have been made in some countries, including the US. In response, the company stated that it cooperates with the authorities and will continue to adhere to its rules.

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