Binance, the largest cryptocurrency exchange, announced that it will launch a new cryptocurrency trading platform in Japan this summer that will meet local regulatory requirements.
Exchange executives explained that as part of Binance Japan’s launch, the international platform will stop providing cryptocurrency services to Japanese traders by Nov. 30, 2023.
To switch to the new local platform, Japanese traders will have to go through the Know Your Customer (KYC) procedure from August 1 to November 30, 2023.
After confirming their identity, they will be able to use the new platform after December 1, and authorized crypto-assets will automatically be transferred to Binance Japan.
As of May 26, 2023, Japanese residents will not be able to open new derivatives accounts on the global Binance platform.
As of June 9, Japanese users will not be able to open new positions. All pending orders will be canceled.
Therefore, the Binance team has advised local traders to close all active positions by June 23, 2023.
Leveraged crypto-assets will also not be available for trading on Binance. Any open leveraged positions will be automatically closed and funds will be returned to the local traders’ wallet.
Japan is considered an important player in the global crypto market, so last year Binance applied to the Financial Services Agency of Japan (FSA) for permission to operate in the country.
Japanese authorities recently said they would introduce stricter measures to combat money laundering through cryptocurrencies.
The new rules will take effect on June 1, 2023. Japan’s regulatory framework also requires cryptocurrency exchanges registered in the country to mandatorily verify the identity of customers.