Binance is expanding into new markets as the crypto industry grapples with the chaos unleashed by the dramatic collapse of crypto exchange FTX.
The world’s largest cryptocurrency exchange has acquired Japan-registered cryptocurrency exchange Sakura Exchange BitCoin (SEBC), Binance announced on its website Wednesday. The deal will allow Binance to enter the world’s third largest economy as a regulated company.
According to Binance, the SEBC acquisition marks Binance’s first license in East Asia. Terms of the deal were not disclosed.
“We will actively work with regulators to develop the integrated exchange in a compliant manner for local users,” said Takeshi Chino, general manager of Binance Japan. I look forward to playing a leading role.”
The acquisition will help the digital asset industry We are suffering from the financial contagion unleashed by the collapse of FTX.
Last month, Binance founder and CEO Changpeng Zhao provided a lifeline to FTX founder Sam Bankman-Fried, once one of the industry’s most respected leaders.
However, Binance quickly backed off, saying that after reviewing FTX’s financials, it concluded that the company’s problems were “beyond our ability to control or assist.”
The deal soon fell apart, paving the way for FTX’s bankruptcy filing and Bankman-Fried’s resignation.
Zhao later announced that his team would set up an “industry recovery fund to support otherwise strong but liquidity-stressed projects” to mitigate further damage from the FTX collapse.
Bankman-Fried, who made a virtual appearance at the New York Times’ DealBook Summit in New York on Wednesday, admitted that he “failed” but “never tried to defraud anyone.” said.
“There are things I want to do all over again,” said the 30-year-old. “I was shocked by what happened this month.”