According to reports from Japanese media, Binance Japan Co., Ltd. is set to launch its cryptocurrency exchange service, specifically spot trading, in August. The platform is expected to offer 34 different cryptocurrencies for trading against the Japanese Yen (JPY), marking the first-time listing of Binance's native exchange token, BNB, in Japan.
This strategic move follows Binance's acquisition of Sakura Exchange BitCoin (SEBC), a Japanese crypto asset trading service provider, in November last year. The acquisition allowed Binance to enter the Japanese market officially, operating under the regulation of the Japan Financial Services Agency (JFSA).
Previously, SEBC, based in Tokyo, supported 11 trading pairs against the JPY, including Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Ripple (XRP), Litecoin (LTC), Ethereum Classic (ETC), NEM (XEM), MonaCoin (MONA), Cardano (ADA), Symbol (XYM), and Cosmos (COT).
The expansion to 34 tokens significantly increases the options available to Japanese traders and investors.
Japan's Crypto Exchange Landscape
A survey by CoinPost highlights the current state of Japan's major crypto exchanges regarding the number of listed assets:
- Bitbank: 30 cryptocurrencies
- GMO Coin: 26 cryptocurrencies
- Coincheck: 22 cryptocurrencies
With 34 tokens available at launch, Binance Japan immediately becomes the exchange with the highest number of tradable assets in the Japanese market.
Services and Features Beyond Spot Trading
Beyond standard spot trading, Binance Japan has announced plans to introduce additional features to cater to the local market:
- Simple Earn: A service that allows users to deposit their cryptocurrencies and earn interest on their holdings.
- NFT Marketplace: A platform for buying and selling non-fungible tokens.
- Convenience Tools: Features like "Auto-Buy" and "API Connectivity" are planned to meet the diverse needs of investors and traders.
However, one notable service will be absent at launch: leveraged trading.
The Absence of Leveraged Trading
Providing leveraged trading, or margin trading services, in Japan requires a specific and difficult-to-obtain license known as the "Type 1 Financial Instruments Business" license. This license is subject to stringent regulatory standards set by the JFSA.
As a result, it is anticipated that Binance Japan will not offer leveraged trading services in the short term, focusing instead on its robust spot trading and other ancillary offerings.
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Frequently Asked Questions
What is spot trading in cryptocurrency?
Spot trading refers to the immediate purchase or sale of a cryptocurrency at its current market price. The transaction is settled "on the spot," meaning the assets are exchanged directly between buyers and sellers at the prevailing price.
Why is BNB's listing in Japan significant?
BNB's debut in Japan is significant because it marks the first time Binance's native utility token is available on a regulated Japanese exchange. This provides Japanese investors with direct access to a key asset within the Binance ecosystem.
How many cryptocurrencies will Binance Japan offer?
At launch, Binance Japan is expected to offer spot trading for 34 different cryptocurrencies against the Japanese Yen, giving it the largest selection of any exchange in Japan.
Will Binance Japan offer leveraged trading?
No, leveraged trading will not be available initially. Offering such services requires a specific license from Japanese regulators, which the exchange has not yet obtained.
What other services will Binance Japan provide?
Besides spot trading, the platform plans to offer a Simple Earn product for earning interest, an NFT marketplace, and tools like Auto-Buy and API connectivity for a better user experience.
Is Binance Japan a regulated exchange?
Yes, Binance Japan operates under the regulatory oversight of the Japan Financial Services Agency (JFSA) following its acquisition of the licensed entity Sakura Exchange BitCoin.
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