- Sakura Exchange BitCoin is set to shut down.
- In its place, the company will launch “Binance Japan.”
- Binance will return to Japan five years after its regulatory troubles started.
On Friday, April 28, the Japanese crypto exchange Sakura Exchange BitCoin announced its imminent shutdown. In its place, the company will launch a new service, “Binance Japan.”
The move comes after Binance acquired Sakura to expand its presence in the land of the rising sun.
Sakura Exchange BitCoin to Shut Down in May
According to a notice to customers, one of Japan’s major crypto exchanges, Sakura Exchange BitCoin, is set to wind down its operation by May 31, 2023.
The exchange requested that customers sell their cryptocurrency assets and withdraw Japanese yen before it shuts down. Otherwise, the remaining funds will be automatically converted to yen and refunded.
After shutting down Sakura, the company will launch a new service with the tentative name Binance Japan. The new exchange will be online in June 2023, according to Sakura.
The new service will require customers to reapply and undergo identity verification again, as the new service will not transfer their data from Sakura.
The news comes after Binance acquired a 100% stake in Sakura Exchange BitCoin on November 2022. In particular, Binance’s acquisition came after sweeping crypto legislation in the country to comply with regulations.
Sakura Exchange BitCoin is a Japan Financial Services Agency (JFSA) regulated entity, making it an attractive acquisition target for Binance.
On the Flipside
- Binance has been under regulatory pressure in multiple jurisdictions, including Japan. In 2018, the country received a warning from the JFSA for operating without a license. The exchange has since been working with the regulators to return to the country.
- Japan’s strict crypto regulation likely played a role in the successful restructuring of FTX Japan. Due to the country’s strong investor protection, FTX Japan users managed to get all their funds back in February 2023.
Why You Should Care
Japan is a significant player in the crypto space, with some of the highest crypto ownership and usage figures in the world. Japanese expansion could boost Binance’s long-term growth prospects.
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