According to a Binance announcement, the cryptocurrency exchange is informing customers that it will begin to restrict Japanese residents' access to the platform. The restriction will take place in the coming weeks without disclosing the exact date of its entry into force; and will be executed gradually. As detailed in the ad:
Binance.com will gradually decline to provide services to residents of Japan. Therefore, in the future we plan to gradually limit transactions for residents of Japan ... As soon as the details of transaction restrictions are determined, we will contact you shortly.
The decision to restrict access in Japan may be based on a recent tightening of rules in the country. Since last year, crypto exchangers are now forced to obtain a national exchange license. Just last year, Binance received a warning from the Japan Financial Services Agency (FSA) for promoting cryptocurrency trading in Japan without a corresponding national exchange license.
Since this rule came into force, exchanges registered in the country had to obtain a license, which required the following:
- have a positive net worth on the balance sheet
- have a capital of at least 10 million yen
- act in accordance with the law
- create a satisfactory corporate structure
- meet the requirements of KYC, AML
- train staff in compliance with the rules and regulations of the country of operation
- keep accounting
In addition, the crypto exchange was forced to create an office in the country with personnel, which will have at least 5-10 employees; and authorized capital deposited in a Japanese bank account.
Since these requirements were made mandatory in Japan, many cryptocurrency exchanges, such as Kraken, decided to move their activities to other countries with a more friendly approach to crypto, such as Malta. Despite this, some others decided to stay and go through the complex process of obtaining a license, such as Huobi and LINE's BitBox exchange.