Binance seeking permit to resume services in Japan

Lavina Daryanani
Source: CoinGeek

Binance is reportedly seeking a license to operate in Japan. In a move to tighten standards in the country’s digital money industry, Japan’s Financial Services Agency warned the world’s largest crypto exchange of operating without registration in 2018.

In fact, the regulator also said that Binance likely allowed Japanese residents to open accounts without confirming their identities. It also added that the exchange would face criminal charges if it continued to do business without a license.

In fact, post-2018, the Japanese regulator issued another warning to Binance last year stating that the exchange was operating in the country without registration.

Why is Binance eying Japan again?

Four years down the line, Japan’s crypto stance has softened. It is now known that Japanese Prime Minister Fumio Kishida’s “New Capitalism” vision seeks to boost Japan’s economy. The minister has pledged to double households’ wealth and offered to support and help the country’s Web3 businesses grow. In the past, Kishida also stated that metaverse and NFT-related developments will be a part of the nation’s growth strategy going forward.

Read More: Japan legally recognizes stablecoins as digital money

Furthermore, back in June, Japan legally recognized stablecoins as digital money. Around the same time, it was revealed that the country might abolish token screening prior to listing. In fact, towards the end of August, it was reported that regulators were looking to ease crypto tax rules.

Read More: Japanese regulators looking to ease Crypto tax rules

The same has had a say in Binance showing interest in re-entering Japanese shores. Per a recent Bloomberg report,

“The nation’s easing approach to crypto and substantial potential for user growth are the key reasons for Binance’s renewed interest in the world’s third-largest economy.”

Additionally, a Binance spokesperson told Bloomberg that the exchange is,

“… committed to working with regulators and policymakers to shape policies that protect consumers, encourage innovation, and move our industry forward.”

The spokesperson, however, declined to comment on conversations with regulators and told Bloomberg,

“It would be inappropriate to comment on any conversations with regulators.”