Huobi Group’s native ecosystem token has been listed on its Japanese exchange as a fully compliant crypto asset.
The cryptocurrency exchange and derivatives platform said the Huobi Token is the first global exchange token to be given regulatory approval by Japan’s Financial Services Agency, which is responsible for overseeing banking, securities, and exchanges.
According to a news release, Japan is known for having some of the world’s toughest compliance policies—as a result, the Huobi Token is just one of 26 compliant crypto assets that trade under the FSA’s guidance.
In April, Huobi Group launched Star Atlas, an analytics tool designed to monitor on-chain transactions and other activities for money laundering, fraud, illegal dark web sales, and even price manipulation in real time to “identify and flag suspicious or problematic transactions” like money laundering, fraud, illegal dark web sales, and even price manipulation for further investigation, the company said.
An arduous journey
The local trading platform will now support six trading pairs for this token, linking it with the Japanese yen, Bitcoin, Ethereum, Bitcoin Cash, XRP, and Litecoin.
In the fullness of time, Huobi Token fees will be reduced, and voting functionality will be brought into force to “strengthen the exchange,” the company added.
Huobi Japan’s CEO Haiteng Chen described the approval process as an “arduous journey,” saying: “The listing is a testament to Huobi’s ongoing commitment to its global compliance strategy. We will continue working closely with the FSA to ensure full compliance with local regulations so our users can trade with ease in a safe and secure environment.”
This was a journey that began back in the middle of 2018, when Huobi Japan began engaging with the FSA to ensure its exchange had the necessary accreditation to operate legally. Japan’s Ministry of Finance subsequently issued a license that allowed the exchange to support six digital assets, 10 trading pairs, and a fiat-to-crypto on-ramp for the yen—groundwork that was crucial for the Huobi Token to also gain approval.
According to the company, Japan has been working to tighten regulations and update existing laws so crypto assets are better defined.