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.
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