Binance exchange has announced that its Japanese branch will commence full operations for local users by August of this year, as reported by Bloomberg. The firm, led by CEO and founder Changpeng ‘CZ’ Zhao, gained a foothold in the Japanese market through the acquisition of Sakura Exchange BitCoin (SEBC), a digital asset platform regulated locally, in November of last year.

The purchase of Sakura, the details of which remain undisclosed, provided Binance with a pathway back into the Japanese market via a platform that complies with the regulations of Japan’s Financial Services Agency (FSA). This marks Binance’s first presence in Japan since 2018, when the company had to exit due to regulatory compliance issues.

According to the recent announcement, Binance Japan, operating via SEBC, will function as a fully compliant platform, offering cryptocurrency and digital asset services to Japanese users. This development is further supported by statements from Japan’s Prime Minister Fumio Kishida, who has indicated potential avenues for cryptocurrency operators to establish themselves in the country and expand the local digital currency ecosystem.

In recent months, policymakers have revised token listing procedures to accommodate more coins and considered regulations to help cryptocurrency businesses comply with financial rules.

Binance’s Expansion and Challenges

While Binance is planning its comeback in the Japanese market, it has faced setbacks in Europe and the U.S. due to regulatory crackdowns. The crypto exchange giant has withdrawn from Cyprus and had its derivatives license revoked by Australia’s securities watchdog (ASIC). Binance France also underwent a raid on its Paris office following suspicions of money laundering activities.

Several executives, including CSO Patrick Hillmann, have left the company amidst a lawsuit from the U.S. SEC. However, these departing leaders have insisted that their departures are unrelated to the allegations against the crypto exchange or CEO Zhao.