Digital asset exchange platform Liquid has launched crypto derivatives trading for Japanese users
Liquid cryptocurrency exchange has received the green light from Japan’s leading financial regulator to launch derivative services in Japan. The Tokyo-based exchange completed registration as a Type I financial instruments business in the country on Tuesday through its subsidiary Quoine. It took more than a year to get approval as the company filed the application with Japan’s financial regulator in the second quarter of last year. Liquid will support both retail and institutional clients on its platform under the Financial Instruments and Exchange Act.
However, the official date when the service will be officially available is yet to be announced. With the latest licensing, the exchange wants to develop new crypto products and expand its presence on the Asian market. Seth Melamed, Liquid’s chief operating officer, stated that the milestone is proof that derivatives trading can be conducted in a well-regulated environment.
“The granting of the type 1 license is the result of intensive preparation and cooperation by the entire Liquid team. It is also a confirmation that trading in cryptocurrencies can be done in a compliant manner with full customer protection and full transparency. “ explained the COO.
Japan’s regulatory landscape has earned a reputation for being strict, as evidenced by the handful of crypto-related companies approved to operate in the region. Unlike jurisdictions like China and India, which have banned crypto activity, the market has opened its arm to interested parties on condition that they meet the strict requirements. The recent approval for Liquid Exchange is an indication that, despite its thoroughness, the region is still attractive to companies in the cryptocurrency space.
A number of cryptocurrency platforms have set up shop in Japan in the recent past. Last year, the Japanese subsidiary of the U.S. cryptocurrency platform Kraken announced that it was returning to the market after a two-year hiatus after the country stepped up its crypto-regulation efforts. In the middle of this month, Huobi Japan announced that it had received approval from the FSA to offer crypto-derivative services.
Outside of crypto derivatives, Liquid made headlines in August after reports surfaced that its systems had been hacked with over $ 90 million in digital assets. The exchange also previously suffered a security breach that resulted in illegal access to its users’ sensitive data, including emails and passwords.