Binance, the largest cryptocurrency exchange in the world, is trying to get back into the Japanese market after leaving four years ago because it didn’t have the necessary authorization to do so.
According to one of the sources, Binance is showing an increased interest in the world’s third-largest economy because of the country’s more welcoming attitude toward cryptocurrencies and the huge potential for user growth.
Prime Minister Fumio Kishida as part of his plan to revitalize Japan’s economy via “New Capitalism,” has pledged to encourage the development of “Web3” companies. Blockchains are the technology behind cryptocurrencies. Hence the “Web3” refers to a decentralized internet that uses blockchains as its backbone.
EXCLUSIVE: Binance, the world’s biggest cryptocurrency exchange, is seeking a license to operate in Japan, four years after retreating from the country, sources say https://t.co/PSmpCDKK9x
— Bloomberg Markets (@markets) September 26, 2022
Japan’s banking watchdog has advocated easing corporate tax laws for crypto assets. Groups advocating for reform have pointed to the high corporation taxes as why some businesses have left the country for Singapore and abroad.
Such measures stand in contrast to the stricter regulatory monitoring coming in various nations in the wake of the $2 trillion wipeout in digital assets from last year’s high, which caused blowups at crypto hedge funds and lenders.
In 2018, Binance’s billionaire co-founder Changpeng “CZ” Zhao abandoned plans to establish a facility in Japan after inquiries by the securities regulator resulted in an official warning to cease operating in the nation without a license. This same warning was reissued to it 3 years later for the same violation of registration regulations.
Binance has established relationships in many Asian nations, giving it a local presence. There have been many regulatory investigations against Binance, some of which have come from the United States. The company has responded by stating it cooperates with government agencies and will continue to adhere to regulations.