Huobi Japan Gets Regulators’ Go-Ahead to Offer Derivatives

Crypto exchange Huobi’s Japanese subsidiary received approval from the local Financial Services Agency to offer crypto derivatives, according to a press release on Monday.

  • Huobi Japan is one of seven crypto exchanges in the country that have successfully registered with the regulators as a Type I financial instruments business, which is any firm that sells and trades securities and derivatives.
  • To register, firms must have stated capital of at least JPY150 million ($466,000), net assets of at least JPY50 million and a capital-to-risk ratio of over 120%.
  • In April 2020, Japan’s FSA ruled that, to offer crypto derivatives, crypto firms have to go through the same regulatory hoops as mainstream finance companies and be registered as Type I financial instruments businesses.
  • A total of 31 exchanges are registered in Japan, according to the FSA.
  • Japan’s financial regulator has implemented some of the strictest rules for crypto in the world as individual tokens have to receive approval to be listed on exchanges.

Read more: Japan’s Financial Services Regulator Issues Binance Warning

Source: Coin Desk

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