Weeks after announcing its intention to withdraw from the Chinese market, Huobi has confirmed that it has a license to offer crypto derivatives in Japan
The Japanese subsidiary of Seychelles-based crypto exchange Huobi has received regulatory approval to offer and trade 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 company.
“This represents an important milestone for Huobi’s business in Japan, as it allows the company to not only develop derivative products, but also provide trading and market-making services to customers. Currently, only seven of the total of 34 cryptocurrency exchanges in Japan have this license, which requires the holder to comply with certain assets”, Huobi said in a statement released on Monday Explanation.
The registration also means that Huobi will now be able to operate derivatives trading systems. Huobi Japan CEO Haiteng Chen praised this latest milestone and shared that it is crucial for the exchange’s expansion plans. Without the license, Huobi would still be limited to partial spot trading.
“We are very pleased to have reached this milestone. It allows us to expand our business beyond spot trading and drive the next phase of our growth in Japan. In the future, we plan to develop a number of crypto derivatives to meet the growing demands of the market.”, so Chen.
In addition to securities and stock exchange trading, the FSA also has the task of supervising the banking and insurance sectors. It has a reputation for being strict in enforcing regulations. The financial regulator has put in place some strict requirements regarding cryptocurrencies, which explains the limited number of approved companies.
Crypto exchanges are subject to the same policies as other large financial companies, in addition to mandatory registration as a Type I financial instrument company.
Huobi Japan already offers spot trading services for 14 of the most popular cryptocurrencies, and the new license will help the exchange expand its services in Japan by engaging in the trading, acquisition and management of crypto derivatives.