Huobi Japan Gets Regulators’ Go-Ahead to Offer Derivatives

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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

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