Binance Plans To Reenter Japanese Crypto Market, Applies For Permit: Report

Binance, the world's biggest cryptocurrency exchange, is once again eyeing the Japanese market as it seeks a formal entry into the country. The exchange has now applied for a permit, motivated by the relaxing crypto regulatory environment in the Asian region.

The crypto exchange reportedly operated in Japan without registration till last year. It withdrew its operations following warnings from the country's financial authorities.

Binance's decision to re-enter the crypto market in Japan is in response to the new economic policies under Prime Minister Fumio Kishida, which promise fair treatment of the crypto industry, Bloomberg reported Monday. Kishida aims to reinvigorate the economy under the rubric of "New Capitalism," which includes promoting the growth of Web3 firms or startups working to build a decentralized version of the internet based on blockchain technology.

A spokesperson from Binance, who refused to go deeper into the topic or give additional details, confirmed the crypto exchange was in talks with Japanese regulators regarding a permit for operating in the region.

"[Binance is] committed to working with regulators and policymakers to shape policies that protect consumers, encourage innovation and move our industry forward," the spokesperson said.

Japan's Financial Services Agency had previously issued two warnings against Binance for operating without a license – the first warning was in 2018 and the next was in June last year. FSA had also warned the exchange that it will proceed with criminal charges if it doesn't withdraw from the market.

Meanwhile, Japanese authorities are gradually easing their policies on crypto. Earlier, there was a 30% corporate tax on holding cryptocurrencies but with the efforts of crypto lobbying groups – the Japan Cryptoasset Business Association (JCBA) and the Japan Virtual and Crypto Assets Exchange Association (JVCEA) – the government has decided to lower the taxes on crypto assets and individual stock investors in an attempt to boost the economy.