Binance To Enter Japanese Market After Four Years
- Binance, the world’s biggest crypto exchange, is seeking a permit to operate in the land of the rising sun, following the relaxing crypto laws under Prime Minister Fumio Kishida.
- The driving force behind this re-entry plan in the Japanese market is guided by Kishida’s new economic policy, which allocates a fair share to the digital asset industry.
- A spokesperson from Binance admitted that the exchange is in talks with the regulatory agencies in the country but refused to disclose details.
The world’s largest crypto exchange Binance is planning to make a formal entry into the Japanese crypto market. According to a recent report by Bloomberg, the exchange is seeking a permit to operate in the land of the rising sun following the relaxing crypto laws under Prime Minister Fumio Kishida.
The driving force behind this re-entry plan in the Japanese market is guided by Kishida’s new economic policy which allocates a fair share to the digital asset industry. The report reads:
“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 decentralized internet built around blockchains, crypto’s underlying technology.”
Confirming the report, a spokesperson from Binance admitted that the exchange is in talks with the regulatory agencies in the country but refused to disclose details saying it would be inappropriate to comment until the things get finalized.
“Binance is committed to working with regulators and policymakers to shape policies that protect consumers, encourage innovation, and move our industry forward.”
Japan, the world’s third largest economy, has recently been in headlines after the financial authority suggested relaxing corporate tax regulations for digital assets along with lowering fees for individual stock investors, supporting Kishida’s initiatives to revive the economy.
In June, the self-regulatory body overseeing the listing of digital coins on crypto exchanges declared that it will shift its attention to managing these assets after they are listed. To put it another way, the Japan Virtual and Crypto Assets Exchange Association (JVCEA) would stop the lengthy screening procedure for small and medium tokens before listing them.
Around the same time, the nation passed a law regulating stablecoins and acknowledged them as digital money.
In addition, a plan to improve the environment for domestic digital asset businesses was submitted to the Financial Services Agency last month by two prominent organizations that represent Japanese crypto businesses. One of the main proposals was to eliminate the 30% annual tax on paper gains from holdings in cryptocurrencies. Moreover, the new proposal also recommended that a scheme that offers tax advantages to individual investors be reinforced.
These actions to make the crypto industry less restrictive in Japan aims to promote the Prime Minister’s “New Capitalism” idea, which promises double household wealth and assist expansion of Web3 firms in the nation.
Binance got two strikes in the past
It is important to note that the new plans from Binance come after it received two warnings from the Japanese government – in 2018 and 2021 – for allegedly operating in the region without a license.
Japanese authorities charged Binance in 2018 with enabling users to register accounts on its trading platform without verifying their identities.