Binance, one of the leading cryptocurrency exchanges, is making its return to the Japanese market by establishing a fully regulated subsidiary in the country.
FTX Japan in 2022 to return assets to clients from February
TOKYO, Dec 30 (Reuters) – The Japanese unit of failed cryptocurrency exchange FTX said on Friday it would return its customer assets from February.
FTX Japan is developing a system with which customers can withdraw assets via the website of Liquid Japan, a crypto exchange it bought in February this year.
“We deeply apologize for the big trouble caused by the prolonged suspension of services for the withdrawal of legal currency as well as crypto assets,” FTX Japan said in a statement.
FTX filed for U.S. bankruptcy protection in November and its founder Sam Bankman-Fried resigned as chief executive after the biggest blowup in the crypto industry drew calls for tighter regulation.
Binance in 2023, one of the leading cryptocurrency exchanges, is making its return to the Japanese market by establishing a fully regulated subsidiary in the country.
The move comes after Binance acquired Sakura Exchange Bitcoin (SEBC), a regulated crypto exchange, in November 2022. SEBC will cease its services by the end of May and reopen as Binance Japan in the coming weeks. Users in Japan will need to register with the new entity, and the migration process will begin after August 1, 2023, with a new identity verification process to comply with local regulations.
Binance’s strategy of expanding its global reach involves acquiring locally-regulated entities, similar to its moves in Singapore, Malaysia, and Thailand. In Japan, Binance had previously exited the market in 2018 due to the lack of an independent license from local regulators.
As part of its compliance efforts, Binance’s Japanese platform will not offer derivative services. Users in Japan will not be able to open or increase options positions after June 9, and pending orders will be canceled, with existing positions needing to be closed before June 23.
What are Binance Leveraged Tokens?
Binance Leveraged Tokens are a type of derivative product that give you leveraged exposure to the underlying asset. Like other tokens, leveraged tokens can be traded on the spot market. Each leveraged token represents a basket of perpetual contract positions.
Binance Leveraged Tokens rebalance on an as-needed basis only. Unlike conventional leveraged tokens, Binance Leveraged Tokens are not forced to maintain constant leverage. Hence, Binance Leveraged Tokens rebalance during extreme market movements only.
The rebalancing of Binance Leveraged Tokens positions is governed by Binance proprietary algorithms. Binance aims to maximize the correlation between the Binance Leveraged Tokens and the underlying margin-Leveraged position.
The fees associated with Binance Leveraged Tokens are as follows:
Binance Leveraged Tokens will also not be available for trade or subscription. However, the company expressed its intention to work closely with regulators to provide derivatives services in a fully compliant manner in the future. Japan, known for its early introduction of crypto regulations, has implemented measures such as the separation of client funds from other assets, which proved beneficial during the recovery of funds at FTX Japan earlier this year.- source: https://coinmarketcap.com/
