Trading Platform Liquid Secures License to Trade Derivatives in Japan

Cryptocurrency trading platform, Liquid has announced that it has secured the license to trade derivatives in Japan. The exchange said that the license, which now positions the firm as a Type I Financial Instruments Business under the Financial Instruments and Exchange Act, was secured through its Japanese subsidiary, the QUOINE Corporation.

Following the license acquisition, Liquid said it aims to expand its derivatives product offering to customers in Japan, albeit, under the Financial Instruments and Exchange Act guidelines.

“We look forward to bringing innovative, customer-centric, and compliant derivatives products to Japan that meet the needs of both retail and institutional market participants. We are focused on providing our customers with access to new crypto assets, products, and services that are relevant to their demands,” the exchange said in a statement.

The company applied for the Type 1 license with the Japanese market regulator back in the second quarter of 2020. The license was formally issued on October 26.

“The Type 1 license issuance is the culmination of a great deal of preparation and collaboration by the entire Liquid team.  It is also a validation that trading derivatives in crypto can be done in a compliant manner with full customer protections & transparency.” – Seth Melamed, Chief Operating Officer

Liquid Trading Platform Advocating for Crypto Compliance

The concept of regulation remains one of the most polarizing subjects in the digital currency industry today. While many exchanges believe they can be invincible from regulators, a number of the mainstream outfits that have been subjected to full compliance to extant regional laws have shown that trading platforms are not out of the reach of market watchdogs.

Now that it has secured the license to trade digital currencies in Japan, the Liquid trading platform is somewhat advocating for crypto regulatory compliance, noting that it “deeply values compliance with laws and regulations to ensure that we continue to provide an environment where customers can trade cryptocurrencies safely and securely. We believe in the democratization of financial services through the innovation and services of the blockchain ecosystem.”

While more exchanges are reportedly set to commit to local regulators, several jurisdictions including the United States do not have a comprehensive law guiding the crypto ecosystem. Many digital currency platforms and stakeholders are calling for changes, as it is serving as a source of friction for many crypto-focused firms, as in the ongoing legal battle between the US Securities and Exchange Commission (SEC), and blockchain payments firm, Ripple Labs Inc.