Bitcoin News Today: SoftBank's PayPay Bridges Traditional Payments and Web3 with Binance Integration

Binance Japan has launched a direct integration with PayPay, Japan's leading mobile payment service, allowing users to buy and sell cryptocurrencies via their digital wallets. The partnership, which went live this week, marks Binance Japan's first move beyond traditional bank transfers for fiat deposits and withdrawals, enabling one-click transactions starting from ¥1,000 ($7). The service operates 24/7, with free deposits and a ¥110 ($0.70) withdrawal fee, according to a joint announcement. Users can also utilize PayPay Points for crypto purchases, either alone or combined with PayPay Money, though identity verification on both platforms is required as per the service launch.

The integration follows PayPay's acquisition of a 40% equity stake in Binance Japan in October 2025, creating a strategic alliance that links PayPay's 70 million users to Binance's trading infrastructure. This collaboration aims to simplify crypto onboarding for retail investors, with daily transaction limits set at ¥1 million and monthly caps at ¥2 million ($13,000). Binance Japan, which launched in 2023 under the Kanto Local Finance Bureau's registration, previously required users to transfer funds through bank accounts or external wallets as noted in service details.

The partnership coincides with Japan's Financial Services Agency (FSA) preparing regulatory reforms to reclassify 105 digital assets, including Bitcoin and Ethereum, as financial products under the Financial Instruments and Exchange Act by 2026. This reclassification would lower capital gains taxes on approved cryptocurrencies to 20%, down from current rates as high as 55% for high-volume traders as reported by industry analysts. The FSA's criteria for inclusion include project transparency, technology soundness, and price volatility assessments.

Meanwhile, the Japan Exchange Group (JPX) is reviewing oversight of listed companies with significant cryptocurrency holdings, responding to sharp stock declines that have hurt retail investors. At least three Japanese firms have paused crypto-buying plans since September, with warnings that fundraising abilities could be restricted if they pivot to crypto-centric strategies. Tokyo-listed Metaplanet, the world's fourth-largest corporate Bitcoin holder, has seen its shares drop 79% from their June peak despite earlier gains.

SoftBank Group, which operates PayPay, is leveraging the partnership to expand its crypto footprint. The company has backed Twenty One Capital, a publicly traded firm holding $3.7 billion in Bitcoin. PayPay's integration with Binance Japan also aligns with its preparations for a U.S. initial public offering, with investors anticipating a valuation exceeding $20 billion by December 2025.

Japan's digital asset market has grown rapidly, with on-chain value received rising 120% year-over-year through June 2025, outpacing other Asia-Pacific nations. Total crypto transactions in Japan reached ¥33.7 trillion ($230 billion) in the first seven months of 2025, and the country now hosts 13.2 million crypto accounts as reported by industry data. The PayPay-Binance integration could further accelerate adoption, positioning SoftBank at the intersection of traditional payments and Web3 innovation.