Huobi Token Approved by Japan Regulators
Huobi exchange’s native token Huobi Token (HT) becomes the first international exchange token to approved by Japanese regulators. This step is taken by the regulators to tighten up protections for cryptocurrency investors.
The Financial Services Agency (FSA) has approved the Huobi Token (HT) as crypto assets that will trade on the world’s second-largest digital asset market from May.
The FSA has only approved 25 other cryptocurrency tokens to tighten up the regulations for the betterment of the cryptocurrency market and investors.
Japan is going to change its policy for Cryptocurrencies by new regulations next month in May. Japanese House of Representatives passed two laws last year to regulate Crypto in Japan. These two Acts are PSA (The Payment Services Act) and FIEA (Financial Instrument And Exchange Act).
Law firm Morrison & Foerster LLP reports that the new regulation will strengthen the protection of investors in cryptocurrency assets. The firm explained in a blog that the custody provider that doesn’t deal in selling, purchasing, and intermediating the sale of crypto assets are also subjected to the new PSA regulations.
Regulations for Cryptocurrency Exchanges
Cryptocurrency derivatives exchanges will be audited under the FIEA regulations, and the related exchange and firms need to register within the Japanese Crypto Industry. Cryptocurrency derivatives exchange transactions that are settled by the delivery of crypto assets, which previously fall under the PSA, now part of the FIEA regulations.
The new regulations also focus on the holdings of the custody firms. The Custody provider can only hold 5% or less of total funds in Hot wallets.
