Huobi approved to deal crypto derivatives in Japan - OhNo WTF Crypto

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Huobi approved to deal crypto derivatives in Japan

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Weeks after announcing its exit from the Chinese market, Huobi has confirmed it is licensed to offer  crypto derivative services in Japan

The Japan subsidiary of Seychelles-based crypto exchange Huobi has received approval from regulators to offer and trade in crypto derivatives. This makes Huobi the seventh crypto exchange in the country to fully register with the Financial Services Agency (FSA) as a Type I financial instruments business.

“This reflects a major milestone for Huobi's business in Japan, as it will enable the company to not only develop derivatives products but also offer trading and market-making services for customers. Currently, only seven out of the total 34 cryptocurrency exchanges in Japan possess this license, which requires the holder to meet specific asset levels,” Huobi said in a statement released on Monday.

The registration also means that Huobi will now be able to run derivatives trading systems. CEO of Huobi Japan, Haiteng Chen, lauded this latest landmark noting it is key in the exchange's expansion plans. Without the licence Huobi would remain limited to offering partial spot trading.

“We're very excited to have reached this milestone. It will enable us to expand business beyond spot trading and fuel the next phase of our growth in Japan. Going forward, we plan to develop a number of crypto derivatives products to meet the growing demands of the market,” said Chen.

The FSA is tasked with overseeing the banking and insurance sectors alongside securities and exchanges. It has a reputation for being strict in enforcing regulations. The financial watchdog has established some stringent requirements around cryptocurrencies which explains the limited number of approved entities.

Crypto exchanges are subjected to the same guidelines as other major finance companies, in addition to the mandatory registration as type I financial instruments businesses. The regulator also requires that each token be approved before it can get listed on exchanges.  

Huobi Japan already offers spot trading services for 14 of the most popular cryptocurrencies, and the new licence will help the exchange to expand its services in Japan by engaging in the trading, underwriting and management of crypto derivatives.

The post Huobi approved to deal crypto derivatives in Japan appeared first on Coin Journal.



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