Binance Officially Resumes Trading in Japan
- Binance acquired Sakura Exchange Bitcoin in late 2022.
- Binance plans to strengthen its ties with regulators and expand to more regions.
- The Nigerian Securities and Exchange Commission has issued another warning to locals against using Binance and other unregistered platforms.
Crypto exchange Binance has announced its return to the Japanese crypto market and the launch of a local arm Binance Japan K.K. Binance said in an announcement on Tuesday, August 1, that local cryptocurrency exchange Sakura Exchange Bitcoin is operating as Binance Japan, which means it complies with local laws. Binance announced that as of August 1, it was providing spot trading for 34 tokens, with plans to begin migrating its global customers on August 14.
Binance shares a deep history with Japan. The country became Binance’s headquarters after its exit from China. However, in response to cautions from Japanese financial regulators over its licensing, Binance moved to Malta in 2018.
In June 2021, Binance received a letter from the Financial Services Agency (FSA) of Japan advising the exchange against conducting business in the nation without a license. A Binance representative explained that the exchange was not actively soliciting Japanese users, nor did it hold exchange operations.
Although Binance plans to expand to new regions, the exchange has a lot of work to do to strengthen its ties with regulators. Binance has had to withdraw its license application in Germany, Austria, and Belgium. The crypto exchange is also the subject of an ongoing investigation in France.
Nigeria’s SEC Warns Against Using Binance
Interestingly, the Nigerian Securities and Exchange Commission has warned locals against using or investing in Binance. The regulator warned that the crypto exchange is not licensed to operate in Nigeria, and locals stand the risk of losing their funds.
The SEC wrote in its note,
The Commission again reiterates that the activities of Binance, https://www.binance.com, and any other platform through which the Company solicits investors are neither registered nor regulated by the Commission and its operations in Nigeria are, therefore, illegal. Any member of the investing public dealing with the entity and making such a solicitation is doing so at his/her own risk.
The SEC announced a circular in June that restricted Binance Nigeria’s operations. The circular contained a similar warning to the one that was recently provided for platforms and investors. However, Binance Nigeria was a phony organization that had no connection to Binance. Binance responded by sending Binance Nigeria a cease-and-desist letter.
The SEC demands that Binance and other unregistered platforms stop their operations in Nigeria. It wrote that “all platform providers making such solicitations are hereby directed to immediately stop soliciting Nigerian investors in any form whatsoever.”
Nigeria has one of the most active crypto markets globally, but many of these activities lack national support. Despite vigorously promoting its central bank digital currency (CBDC), Nigeria adopts a conservative stance toward the cryptocurrency industry.
However, the country has yet to record any significant progress in its bid for CDBDC adoption. Nigeria launched the eNaira in 2021, but acceptance rates have fallen short of projections, leading the central bank to consider several strategies to promote usage. Nigerian financial regulators have also introduced a 10% tax on gains from the sale of digital assets such as cryptocurrencies.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
