The Japanese crypto regulators have approved the Huobi token. The native Huobi crypto exchange token has made history by becoming the first to be approved in Japan. According to the regulating body Financial Services Agency (FSA), Huobi Token (HT) is a compliant cryptocurrency asset.
The Japanese crypto community has every reason to smile as the HT might be available for trading on the third largest exchange. The approval is a big boost for the platform given that only 25 tokens have been allowed to enter the Japanese market to date.
Japanese Crypto regulators protecting investors
Token penetration in Japan is highly controlled. To achieve investor protection and market flooding, the Japanese crypto regulators are keen on which token enters the market. Since the revision of the local Payment Services Act (PSA) last year which comes into effect on May first, investor protection has been enhanced.
The PSA and Financial and Exchange Instruments Act (FIEA) seek to protect investors in the crypto space. Starting May 1 when the Huobi token is expected to launch in the country, custodial service providers who in a way trade or acts as third parties will have to comply with the new crypto regulations.
Crypto auditing falls under Japanese crypto regulators
The stringent laws allow the Japanese crypto regulators to audit crypto derivatives. All firms operating in the crypto sphere are required to go through a legal registration process to be allowed to operate in the Japanese market.
In a bid to protect the crypto investor, any exchange is required by law to store their digital assets in cold wallets. This ensures fund security and increased user confidence in investing in digital assets. However, observers are waiting to see the impact from Huobi exchange and HT will have in the Japanese marketplace.