- After announcing upcoming restriction to Japanese customers, Binance announces discussions with Z Corp. and TaoTao underway
- Full regulatory compliance important to launch trading services for users in Japan
The world’s leading cryptocurrency exchange Binance is now working towards expanding its presence in Japan, announced the exchange on Friday.
The exchange is in talks with Z Corporation, a subsidiary of Yahoo Japan and TaoTao for strategic partnerships in the Japanese market.
Z Corporation Inc. is a wholly-owned subsidiary of Z Holdings Corporation, which is the Softbank subsidiary formerly known as Yahoo Japan which is a virtual currency exchange service provider.
Z Corp. along with TaoTao Inc., a Japanese licensed cryptocurrency exchange and a portfolio company of Z Corp., are having strategic partnership discussions and deliberations with Binance Holdings Ltd.
“Couldn't ask for a better partner than TaoTao in Japan,” said Binance CEO Changpeng Zhao. He added in a tweet,
Many non-Japanese may not understand the significance of this. TaoTao & Z-Corp are subsidiaries of Yahoo Japan. YJ has been independent from Yahoo US for a long long time and is doing well. It is 48% owned by Softbank.
Couldn't ask for a better partner than TaoTao in Japan. https://t.co/dhTaJkD7WC
— CZ Binance (@cz_binance) January 17, 2020
The idea is to launch trading services for users in Japan by using Binance’s cutting-edge technologies while Z Corp. and TaoTao will collaborate with Japan's financial watchdog, Financial Service Agency (FSA) to ensure full regulatory compliance.
Regulation preventing crypto exchanges from serving the users in Japan
On Jan. 15, the crypto exchange’s Japanese support website said that they would restrict transactions for Japanese residents at an unspecified later date. The restriction would be implemented gradually with details to be revealed later.
Before moving its operations to Malta, Binance was headquartered in Japan. Its rival Kraken stopped providing services to Japanese residents in April 2018 as well.
This has been likely driven by Japanese regulators who released a warning for crypto exchanges asking them to obtain a license. Binance rival Huobi secured the license in Jan. 2019.
On the weekend, FSA proposed cutting the leverage rate on cryptocurrency margin trading from 4x to 2x. This limit reduction is expected to affect the crypto exchanges negatively as last year when the leverage limit was reduced to 4x, bitFlyer saw a significant reduction in trading volume.
The revised versions of the Financial Instruments and Exchange Act (the “FIEA”) and the Payment Services Act (the “PSA”) are also expected to bring on some strict measures, that will be enforced in April.