Binance is preparing for a formal entry into the Japanese market by seeking permission to operate in the country.
The world’s largest crypto trading platform’s renewed interest in Japan follows the easing of crypto laws in the world’s third-largest economy under Prime Minister Fumio Kishida.
Binance eyes the Japanese market
According to a Bloomberg report, Binance’s interest in re-entering the Japanese market is driven by the country’s new economic policy that promises a fair share of the digital asset industry.
“Japanese Prime Minister Fumio Kishida’s agenda to revitalize the economy under the rubric of “New Capitalism” includes supporting the growth of so-called Web3 companies. The term ‘Web3’ refers to a vision of a decentralized Internet built around blockchains, the underlying technology of cryptography,” Bloomberg said.
Admitting that the company was in talks with Japanese regulators, a Binance spokesperson declined to divulge details, saying it would be inappropriate to comment on an ongoing dialogue.
“[Binance is] committed to working with regulators and policymakers to shape policies that protect consumers, encourage innovation and move our industry forward,” the spokesperson added.
Relaxed cryptography rules
In a move to make the crypto scene less restrictive, the self-regulatory body for listing digital currencies on crypto exchanges in June said it would shift its focus to managing such assets once they are listed.
In other words, the Japan Crypto and Virtual Asset Exchange Association (JVCEA) would eliminate the months-long selection process before listing small and medium-sized tokens.
At the same time, the country adopted a stablecoin regulation law and recognized stablecoins as digital money.
Last month, two leading bodies representing Japanese crypto companies submitted a plan to the Financial Services Agency that aimed to make the environment friendlier for domestic digital asset companies. One of the key recommendations was to remove a 30% annual tax on paper gains from crypto holdings.
Japanese regulators are also reported to have advised relaxing corporate tax provisions around crypto assets, according to the Bloomberg report.
These efforts are being made to prevent the exodus of digital asset companies from Japan to friendlier jurisdictions such as Singapore.
Binance was warned twice
The world’s largest crypto exchange was warned twice, in 2018 and 2021, by Japanese authorities for allegedly operating in the country without registration.
In 2018, Japanese regulators accused Binance of allowing people to open accounts on its trading platform without confirming their identity. They reportedly warned the exchange of criminal proceedings if it continued to operate without registration.
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