Binance, the world’s largest crypto exchange, announced that it would discontinue its services for residents of Japan starting November 30, 2023. The move comes as Binance seeks to comply with local regulations and establish a new platform dedicated to Japanese users.
The migration process for Japan resident users to complete identity verification, also known as KYC (Know Your Customer), will be available from August 1 until November 30, 2023.
In a blog post, Binance expressed its commitment to creating a platform that fully complies with Japanese laws and regulations. The new local platform is expected to launch this summer, although the exact date and additional details will be provided in the coming months.
As part of the transition, the exchange has outlined a schedule of gradual restrictions on its global platform and the migration process to the new local platform. Starting May 26, 2023, Japan resident users will not be able to open new derivative accounts.
On June 9, options and BLVT (Binance Leveraged Tokens) trading will be limited, and all pending orders will be canceled. By June 23, users must close any existing options and BLVT positions.
Further restrictions will take effect in the following months. On November 30, spot trading services will be discontinued, and any open positions related to spot trading will be canceled automatically. Unpermitted tokens will be converted to Bitcoin (BTC) on the same day.
Limited Token Availability On Binance Japan
Binance Japan’s new platform will initially offer over 30 tokens for spot trading, subject to change. However, certain products and services, including derivatives, will be limited to comply with local regulations. Binance aims to expand its offerings in Japan in the future, potentially including derivatives, in a fully compliant manner.
For users with assets on Binance.com, the accounts held by local Japanese residents will enter “withdrawal-only mode” from December 1, 2023. It means that trading on the global platform will no longer be possible, and users will be required to withdraw their assets.
The exchange has provided a list of frequently asked questions (FAQs) to address user concerns. It clarifies the process for users with futures positions, BLVT subscriptions, options positions, and open positions in spot trading.
The FAQs also cover topics such as the reason for the platform change, the availability of Binance.com for Japanese users, and the fate of non-permitted assets after the deadline.
However, Binance encourages users to complete the necessary actions before the deadlines to ensure a smooth transition. They emphasize their commitment to complying with local laws and regulations and bringing their services to Japanese users through the new local platform.
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