The deal marks Binance’s entry into the Japanese market as a Japan Financial Service Agency (JFSA) regulated entity, marking the exchange’s first license in East Asia.
Binance Japan GM Takeshi Chino described Japan as “one of the world’s leading economies with a highly-developed tech ecosystem” which is “poised for strong blockchain uptake.”
“The Japanese market will play a key role in the future of cryptocurrency adoption,” Chino said.
SEBC CEO Hitomi Yamamoto said Binance will “contribute to building a more compliant atmosphere for users in Japan and help them access key crypto services.”
Binance’s deal comes as Japan ramps up its interest in crypto. In October Prime Minister Fumio Kishida said Japan is using Web3-based technologies to solve challenge in local jurisdictions. Kishida also hinted at digitizing national identity cards, while stressing that the cabinet would “promote effots to expand the use of Web 3.0 services that utilize the metaverse and NFTs.” His comments came after establishing a Web3 policy office under the Ministry of Economy, Trade and Industry (METI).
Read more: Japan Doubles Down on Web3 Investments
“The Japanese government’s support for NFTs and metaverse services is a welcome and commendable step and has affirmed Japan’s commitment to Web3. There has been a great deal of effort from many parties involved to reach this point,” Daiki Moriyama, director of gaming blockchain Oasys, told Blockhead.
Japan has also emerged as an unlikely leader in crypto adoption. The country’s DeFi transaction volume of US$56.7 billion is nearly double that of South Korea’s, and not far off from China’s total of US$67.6 billion.
Just last month, Japan’s Digital Ministry announced it is creating a DAO to further develop an understanding of how organisations can utilise web3. The group is also considering granting the DAO legal status in Japan, citing the U.S. state of Wyoming approving similar legislation in July 2021.
“In regards to services and tools discussed in connection with Web 3.0 including crypto assets, DeFi, NFTs, DAOs, and the metaverse, each have benefits and risks,” said the Digital Agency. “There are various problems to be addressed.”