Crypto exchange Binance seeks permit to return to Japan market after 4 yrs

business-standard.com:

Binance, the world’s biggest cryptocurrency exchange, is seeking a license to operate in Japan, four years after retreating from the country as it didn’t have a permit, according to people familiar with the matter.

The nation’s easing approach to crypto and substantial potential for user growth are the key reasons for Binance’s renewed interest in the world’s third-largest economy, one of the people said.

Japanese Prime Minister Fumio Kishida’s agenda for reinvigorating the economy under the rubric of “New Capitalism” includes support the growth of so-called Web3 firms. The term “Web3” refers to a vision of a decentralized internet built around blockchains, crypto’s underlying technology.Also Read: How Binance became a hub for hackers, fraudsters and drug traffickers

“It would be inappropriate to comment on any conversations with regulators,” a Binance spokesperson said in response to request for comments. Binance is “committed to working with regulators and policymakers to shape policies that protect consumers, encourage innovation, and move our industry forward,” the spokesperson added. An official at the Financial Services Agency declined to comment.

Last month, Japan’s financial regulator proposed relaxing corporate tax rules for crypto assets. Lobbying groups have been calling for changes, saying high corporate taxes cause some firms to relocate to Singapore and elsewhere.

Binance isn’t the only foreign firm looking to push into Japan’s cryptocurrency market. Temasek-backed Amber Group this year acquired DeCurret Inc., a crypto exchange that has operated in the country since 2018.

Changpeng Zhao, founder and chief executive officer of Binance Holdings Ltd., during a panel session on day two of the Viva Technology