By
Chimamanda U. Martha
March 27th, 2024
Huobi Token (HT) has managed to become the first global exchange token that is now approved in Japan. Meanwhile, the regulators in the country have decided to enhance protections for crypto investors.
Japanese regulator Financial Service Agency (FSA) has nodded in compliance with Huobi token (HT), making it the first global exchange token to get approval in the Asian country.
Huobi revealed this via their official Twitter page. They announced further in the tweet that they would mark the 26th crypto in Japan.
Great News!
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
FSA permitted Huobi Token as an acquiescent digital currency and fit to operate in the second largest cryptocurrency market in the globe from next month.
Amidst approving the Huobi Token by the FSA, only 25 crypto coins are permitted by FSC. These coins are listed on the regulator’s white list as they are working on improving the rules to characterize crypto coins better.
In 2019, Japan legislators modified Japan’s Payment Service Act (PSA) alongside the Financial Instruments and Exchange Act (FIEA). The reviewed rules enforcement are to kick start on May 1.
Morrison & Foerster, a law firm in their analysis, explained that the adjustments on the PSA are to improve security for crypto holders. The law-firm in their blog said that the PSA new rules would govern even companies that store crypto for clients who and don’t trade crypto assets.
With Huobi Token, Further Responsibilities for Exchange Firms
Crypto asset derivatives, too, would be checked with the FIEA rules. Firms performing similar operations also before they begin offering services are to register with the Japanese crypto industry. Financial products, too, that are valued with underlying token and regulated by the PSA before, will also be governed by FIEA now.
Providers that keep clients’ crypto with them too needs to get registered as a crypto exchange provider after next month.
New PSA Requirements
Mandatory in the modified Payment Service Act is securities of user fiat as their deposit should be stored in a trust account. Exchange firms are to store clients token in an offline wallet or anything similar. This is to guarantee funds are safe and improve consumer assurance in investing in cryptos.
FSA also necessitates that tokens kept in hot wallets should be 5 percent or lower of clients’ entire amount of token held.