【Tokyo's Cryptocurrency Boom and Bust: From Escaping Binance to Giants Gathering, How Magical is Japan's Compliance Road?】

Hey everyone! Today, let's chat about the happenings in Tokyo's cryptocurrency scene. Old players know that Tokyo's crypto scene was truly vibrant twice — the first time was in 2017 when Binance suddenly announced it was moving its headquarters from Shanghai to Tokyo, and CZ became a regular at Ginza office buildings. Back then, if you wanted to meet big shots like Zhao Dong, you really had to buy a plane ticket to fly over, and the streets were filled with Chinese faces holding Bitcoin wallets.

But good times didn’t last long. In March 2018, the Financial Services Agency suddenly showed up for a "tea". What they meant by tea was actually a reminder: "What you’re doing won’t work in Japan unless you get a license." At that time, compliance policies were as unclear as fog; seeing the signs, Binance immediately ran off to Dubai. This left Tokyo’s peers heartbroken, as they could have taken advantage of Binance's momentum to become Asia's crypto hub, but it fell flat instead.

No one expected that five years later, the plot would twist dramatically! In 2022, Japan's Financial Services Agency finally clarified compliance policies; as long as you acquire a local company license, you can legally set up an office in Marunouchi. What’s even better is that as long as you don’t touch Japanese fiat currency for deposits and withdrawals, and pay your taxes on time, the government treats you like a "charm".

Once this policy was implemented, crypto giants flocked to Tokyo as if they had made an appointment. In 2023, just among those I know, there were exchanges starting with G and O seeking to acquire local companies, and those already holding licenses were crazily expanding their teams — when I first arrived in Tokyo, one major exchange had just a few dozen people cramped in a small office, and now they occupy an entire floor!

Recently, colleagues visiting on business have been complaining: "In 2018, two days in Tokyo was enough, now you can’t wrap things up in less than a week!" It’s not because the trains are crowded, but because there are simply too many project parties, VC firms, and regulatory bodies to meet. Walking through Roppongi, the person looking down at their phone could be the CTO of an exchange, and the one you greet could very well be a newly licensed CEO.

Tokyo is lively again, but the only difference is — this time everyone has compliance documents in their pockets, which makes them feel more secure. Do you think Tokyo can become the next crypto capital? Let’s discuss in the comments!