CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Huobi Japan green lit to offer crypto derivatives

By Aaron Woolner

07:02, 19 October 2021

Huobi cryptocurrency exchange logo on smartphone
Huobi cryptocurrency exchange logo on smartphone - Photo: Shutterstock

The Japan arm of cryptocurrency exchange Huobi has been granted approval from the country’s financial regulator to offer cryptocurrency derivatives and derivatives trading onshore. 

The green light from Japan’s Financial Services Agency (JFSA) comes a fortnight after Huobi announced it would stop offering services to customers in its home country of China, following a crackdown on digital asset trading in the world’s second largest economy. 

Huobi’s Japanese licence is the first major announcement by the cryptocurrency exchange since its co-founder told Bloomberg that the firm was now focusing on a global strategy. 

Huobi will provide market making services

The JFSA is the chief financial services regulator in Japan and provides oversight of the country’s banking, securities and exchange, and insurance sectors and its approval enables Huobi to offer a range of services beyond cryptocurrency trading. 

“This [licence] reflects a major milestone for Huobi's business in Japan, as it will enable the company to not only develop derivatives products, but also offer trading and market-making services for customers. Currently, only seven out of the total 34 cryptocurrency exchanges in Japan possess this license, which requires the holder to meet specific asset levels,” Huobi said in a statement.

What is your sentiment on BTC/USD?

70130.90
Bullish
or
Bearish
Vote to see Traders sentiment!

DOGE/USD

0.22 Price
-3.510% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

XRP/USD

0.64 Price
+0.700% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

BCH/USD

630.25 Price
+9.440% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

ETH/USD

3,544.29 Price
-0.480% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

Going beyond spot cryptocurrency trading

“Without this license, the cryptocurrency exchanges may only offer limited spot trading services of cryptocurrencies for customers,” the statement added. 

Huobi Japan CEO Chen Haiteng said the firm was planning to “develop a number of crypto derivatives products” in addition to the offers spot trading of 14 cryptocurrencies, including Bitcoin, Ethereum, and Huobi Token it currently conducts.

Huobi received approval to trade its eponymous token from Japanese regulators in June 2020. It was the first such exchange token to be licensed in the country.

Read more: Huobi Tech tumbles after crypto trading platform bars new China users

 

Markets in this article

BTC/USD
Bitcoin / USD
70130.90 USD
-543.85 -0.770%
ETH/USD
Ethereum / USD
3544.29 USD
-17.18 -0.480%

Rate this article

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 580.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading