Sources: Binance Is Seeking a License to Operate in Japan

Binance 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. And 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. Such steps are somewhat of a contrast to the tougher regulatory oversight emerging in a range of countries after a $2 trillion wipeout in digital assets from last year’s peak led to blowups at crypto hedge funds and lenders.

"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."