Cryptocurrency Exchange Liquid Receives Japanese Derivatives License

Japanese crypto exchange Liquid has announced that its subsidiary, Quoine Corporation, has received a Class I Financial Instruments Trader license from regulators under the Financial Instruments and Exchange Act.

The approval will allow Liquid to begin trading derivatives on its platform, which offers investment opportunities to both retail and institutional clients, although a specific start date has not yet been announced.

Liquid was founded in 2014 and is one of the largest cryptocurrency exchanges in the world with over 800,000 customers and a reported daily peak trading volume of 1.1 billion a license from the Monetary Authority of Singapore.

Liquid CEO Seth Melamed shared his thoughts on the importance of regulation in the industry:

“The release of the Category 1 license is the culmination of the tremendous preparation and collaboration of the entire Liquid team. It is also a confirmation that trading in cryptocurrency derivatives can be compliant with full customer protection and transparency. “

Related: Hacked Payments Exchange Receives $ 120M Debt From FTX

In mid-August of this year, Liquid was the victim of a $ 97 million security hack into its hot wallet, despite the company wanting to emphasize that user wallet balances were not affected by the incident.

Hot wallets like Metamask and Phantom are a method of storing and trading cryptocurrencies that are considered more vulnerable to security breaches than the offline alternative of cold wallets.

In the weeks following the targeted attack, the exchange released positive news of a $ 120 million debt financing investment by FTX Trading, a subsidiary of FTX, to improve the exchange’s balance sheet, support licensing efforts in Japanese and Singaporean jurisdictions, and the Improve capital generation and liquidity as well as customer support.

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