Japan Welcomes Huobi Crypto Exchange as Fully Licensed Platform, Thanks to BitTrade Merger
Huobi is a renowned cryptocurrency exchange that has managed to become the 7th largest of its kind around the entire world, based on daily traded volume.
Now, they are using a merger with BitTrade to make themselves even more profitable. According to a press release, Huobi is now functioning as a fully licensed platform in Japan
BitTrade was acquired by Huobi due to their purchase as a majority stake via Huobi Japan Holding Ltd, which occurred in September last year. When the acquisition happened, there were only 16 crypto exchanges within Japan that were licensed by the Japan Financial Services Agency (FSA), which included Huobi.
Huobi’s Group Founder and CEO, Leon Li, expressed how substantial a milestone this event is for Huobi, given the way that Japan tends to rule the financial market. The press release continues, focusing on the security provisions that Huobi has in place. They describe the way that Huobi:
“features specialized distributed architecture, a Distributed Denial of Service (DDoS) attack countermeasures system, and A+ ranked SSL certification (the highest available).”
Japan published the Payment Services Act in April 2017, which made the licensing of any cryptocurrency exchange a requirement, if they want to operate within the country. However, since then, the FSA has continued to add to the requirements of applicants, especially considering the $532 million theft that the Japanese crypto market experienced with CoinCheck.
Before the stake deal took place, BitTrade was the first of the FSA-licensed platforms to find themselves acquired by an international buyer. This buyer was Eric Cheng, a Singaporean multi-millionaire who also collected FX Trade Financial Co., Ltd, BitTrade’s affiliate, in an acquisition. FX Trade Financial Co., Ltd is also one of the leading platforms for forex trading in Japan. After this deal, FX Trade Financial is now the holder of 25% of the shares available for BitTrade.
Huobi was originally founded in China in 2013, though the crackdown on domestic crypto-to-fiat exchanges in Beijing led them out of China and to Singapore instead. As the company has worked to expand their platform, they have even rebranded HBUS to Huobi, considering how it is better known than the former name. With this acquisition in place, and with the recent FSA licensing of CoinCheck, there are presently 17 exchanges approved by the regulators in Japan.
Coinbase has expressed their positive opinion over the way that Japan is taking charge in their regulatory measures. They added that the heightened security focus is “good for us,” which is most likely in reference to their intent to secure a license in Japan as well after seven months of efforts to receive approval.
Presently, Huobi Japan allows for the trading of Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Ripple, and Monacoin.