Binance, the world’s largest cryptocurrency exchange, is attempting to re-enter the Japanese market after leaving four years ago due to a lack of authorization.
According to sources, Binance has increased its interest in the world’s third-largest economy due to the country’s more welcoming attitude toward cryptocurrencies and the enormous potential for user growth.
Prime Minister Fumio Kishida has pledged to encourage the development of “Web3” companies as part of his plan to revitalise Japan’s economy through “New Capitalism.” Blockchains are the underlying technology that powers cryptocurrencies. As a result, “Web3” refers to a decentralised internet powered by blockchains.
Japan’s banking watchdog has advocated for crypto assets to be exempt from corporate taxation. High corporation taxes, according to reform advocates, are the reason why some businesses have fled to Singapore and elsewhere.
Such measures contrast with the stricter regulatory oversight that is being implemented in various countries in the aftermath of the $2 trillion wipeout in digital assets from last year’s high, which caused blowups at crypto hedge funds and lenders.
Binance’s billionaire co-founder Changpeng “CZ” Zhao abandoned plans to open a facility in Japan in 2018 after the securities regulator issued an official warning to stop operating in the country without a licence. The same warning was issued to it three years later for the same registration violation.
Binance has established relationships in many Asian countries and has a local presence. Binance has been subject to a number of regulatory investigations, some of which originate from the United States. The company responded by saying it is cooperating with government agencies and will continue to comply with regulations.