Huobi Becomes First Exchange Approved By Financial Services Agency (FSA) To Launch its Native Token in Japan
Huobi Cryptocurrency exchange has become the first international exchange to launch its native token Huobi Token (HT) in Japan after getting a regulatory nod in the country. Financial Services Agency (FSA) approval for Huobi’s native token comes amid heightened security for crypto assets in the country. The regulatory nod would allow Huobi token to trade in the world’s second-largest crypto market starting from May.
While Huobi’s native token (HT) is the first of its kind, there are only 25 other crypto tokens that have been cleared by the FSA to be traded in the country.
Japan has been known for one of the most crypto progressive nations and among the first to have regulatory clarity over crypto use. Japan was also approached by many other G20 nations to help them in formulating better crypto regulations in their respective countries.
However, in recent times Japan has shifted its focus towards consumer security after an increased number of fraudulent activities. The tightened regulatory policies are being seen as a way to better define crypto assets.
FSA approves HT as THE FIRST global compliant exchange platform token in Japan!
Huobi Japan will officially list HT in May and HT will be traded and acknowledged as the 26th compliant digital assets in Japan. #HuobiTokenJapan
— Huobi (@HuobiGlobal) April 23, 2020
Changes Made by the FSA to Make Crypto Ecosystem More Secure
Japan has been focused on the security and protection of consumers since last year when the Japanese House of Representatives made changes to the Payment Services Act (PSA) and Financial Instruments and Exchange Act (FIEA) which ensured more protection for customers and investors.
The new changes would also be applicable for custodian service providers who may not be directly involved in buying or selling of crypto assets. The proposed changes are set to come in practice from May 1st, 2020.
Apart from crypto service providers, even crypto derivative products would fall under FIEA regulation and related businesses would be required to obtain an operating license to start a business in the country.
Under the new amendments, even those derivatives and futures products that were settled in crypto-assets and fell under the jurisdiction of PSA will now be regulated under FIEA. Crypto custodians which have crypto assets under their management would be required to register as a crypto exchange after May 1st.
Crypto Exchanges Must Hold User Assets in Cold Wallets
The proposed amendments keeping consumer protection as a priority would require any crypto service provider be it an exchange or custodian to hold customer’s digital assets in cold storage or something equivalent. The new amendments under PSA also direct exchanges and custodians that they may only keep up to 5% of total customer asset value in hot wallets.
The new proposed changes in the regulations which are scheduled to come in effect from May 1st will ensure consumer safety as the top priority. Many analysts and crypto proponents believe that the move would create a safe and sound business environment in the country which in turn would invite more crypto business as well as encourage consumers to invest in crypto assets without worrying about the security of their funds.