Binance is preparing for a formal entry to the Japanese market by seeking a permit to operate in the country.
The renewed interest from the world’s largest crypto trading platform in Japan follows the relaxing crypto laws in the world’s third largest economy under Prime Minister Fumio Kishida.
Binance Sets Eyes on Japan Market
As per a Bloomberg report, Binance’s interest in re-entering the Japanese market is guided by the country’s new economic policy that promises a fair share to the digital assets industry.
“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,” Bloomberg said.
Admitting that the company was in talks with the Japanese regulators, a Binance spokesperson refused 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.
Relaxing Crypto Regulations
In a move to make the crypto scene less restrictive, the self-regulating body for the listing of digital coins on crypto exchanges in June said it would shift its focus to administering these assets once they are listed.
In other words, the Japan Virtual and Crypto Assets Exchange Association (JVCEA) would do away with the months-long screening process before listing small and medium tokens.
Around the same time, the country adopted a stablecoin regulation law and recognized stablecoins as digital money.
Last month, two leading bodies representing Japanese crypto businesses submitted a plan to the Financial Services Agency that sought to make the environment friendlier for domestic digital asset businesses. One of the key recommendations was to remove 30% annual taxation on paper gains on crypto holdings.
Japanese regulators are also reported to have advised relaxing corporate tax provisions around crypto assets, the Bloomberg report said.
These efforts are being made to prevent the exodus of digital asset businesses from Japan to friendlier jurisdictions such as Singapore.
Binance Was Warned Twice
The world’s largest crypto exchange was twice warned – in 2018 and 2021 – by the Japanese authorities for allegedly operating in the country without registration.
In 2018, Japanese regulators accused Binance of letting people open accounts on its trading platform without confirming their identities. They reportedly warned the exchange of criminal proceedings if it continued to operate without registration.
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