Huobi’s Japanese subsidiary received approval from the local Financial Services Agency to offer crypto derivatives, according to a Thursday press release.

• Huobi Japan is one of seven exchanges in the country to have successfully registered with the regulators as a Type I financial instruments business.
• To register, firms must have stated capital and net assets upwards of JPY50 million ($438,061 each, and a capital-to-risk ratio over 120%.
• In April 2020, Japan’s FSA ruled that, to offer crypto derivatives, crypto firms have to go through the same regulatory hoops as mainstream finance companies and be registered as Type I financial instruments businesses.
• A total of 31 exchanges are registered in Japan, according to the FSA.
• Japan’s financial regulator has implemented some of the strictest rules for crypto in the world; individual tokens have to receive approval to be listed on exchanges.

Read more: Japan’s Financial Services Regulator Issues Binance Warning