A source close to the situation says that Binance, one of the world’s largest cryptocurrency exchanges, has applied for a license to operate in Japan four years after it withdrew from the country due to the lack of a permit.
It is believed that Binance’s renewed interest in the world’s third-largest economy is due to the nation’s easing approach towards cryptocurrency and substantial potential for user growth.
Easier Regulation Attracting Businesses
In his efforts to revivify the economy under the banner of ‘New Capitalism,’ Prime Minister Fumio Kishida has stated that he supports the growth of companies that fall under the Web3 category.
A Binance spokesperson said in response to a request for comments:
“It would be inappropriate to comment on any conversations with regulators. Binance is committed to working with regulators and policymakers to shape policies that protect consumers, encourage innovation, and move our industry forward.”
There was no comment from a representative of the Financial Services Agency.
There has been a proposal to relax corporate tax rules for crypto assets proposed by Japan’s financial regulator last month. In recent years, lobbying groups have called for changes to the tax code, claiming that high corporate taxes lead some firms to relocate to other countries, such as Singapore.
Many foreign firms are looking to participate in the Japanese cryptocurrency market, and Binance is one of them. DeCurret Inc., which has operated in the country since 2018 and was backed by Temasek Group this year, was acquired by Amber Group.
Several countries have introduced tougher regulation of crypto hedge funds and lenders since last year’s post-peak meltdown of digital assets led to collapses of crypto hedge funds and lenders after a $2 trillion wipeout of digital assets from last year’s peak, leading to blowups at crypto hedge funds and lenders.
Changpeng “CZ” Zhao, Binance’s billionaire co-founder, acquiesced in 2018 to an official request from Japan’s securities regulator to stop operating in the country until a license is obtained. Three years later, the company got a similar warning for failing to comply with the rules for registering a company.
Through partnerships, Binance can be found in countries such as Thailand, Malaysia, Indonesia, and India, as well as in the Middle East.
Many jurisdictions, including the US, have investigated Binance under regulatory authority as a result of its activities. According to the firm, in response to the authority’s request, it continues to work with the authorities and will continue to meet any requirements set by their office.