Crypto.com gets nod in Dubai and FTX launches in Japan

Acquisition

Crypto.com will have further requirements before its full license is granted in the “near-term” and FTX said the move would allow it to work “directly with Japanese regulators.”

Two out of the top 10 largest cryptocurrency exchanges by volume will expand into new markets, with Crypto.com obtaining a provisional crypto license in Dubai and FTX launching in Japan.

Crypto.com announced on June 2 that the Dubai Virtual Assets Regulatory Authority (VARA) provided the exchange with provisional approval of its Virtual Asset License giving the company the go-ahead based on initial compliance checks.

The exchange said that VARA will carry out further due diligence and other mandated requirements before its full operating license is issued which it expects to happen in the “near term”

Crypto.com said in March it would create a regional office in the United Arab Emirates (UAE) largest city after it enacted new laws for crypto and created VARA with the goal of making Dubai a global hub for crypto.

The UAE Minister of State for Foreign Trade, Dr Thani Al Zeyoudi said in the announcement the country believes “cryptocurrencies, virtual assets and blockchain will revolutionize the financial services sector.” He added it's “attracting companies to the UAE to build on this vision and enable technologies of the future to flourish here.”

FTX Japan launches

FTX — which has overtaken Coinbase to become the second largest centralized exchange in terms of volume — has launched FTX Japan to service its Japanese customers after it acquired the local Liquid crypto exchange in February.

Japan has strict rules for crypto exchanges wanting to operate in the country with the commissioner of crypto regulator the Financial Services Agency (FSA) even admitting it makes things “rather tough” for exchanges.

FTX CEO Sam Bankman-Fried said that “Japan is a highly regulated market with a potential market size of almost $1 trillion” for crypto trading.

The expansions are in stark contrast to other major crypto firms that are are having to cut staff due to the ongoing bearish conditions.

Gemini exchange reportedly plans to cut 10% of its employees due to the unfavorable market conditions, Coinbase also announced in mid-May its slowing hiring to ensure it can weather the dampened market.

At the end of April the crypto-friendly trading platform Robinhood fired 9% of its workforce with its stock price at an all-time low as part of a wider market downturn.

Crypto exchange Liquid attains Japanese derivatives licence

Coin Telegraph

The exchange filed the application to Japan’s financial regulatory body in Q2 of 2020.

Japanese cryptocurrency exchange Liquid has announced that its subsidiary firm, Quoine Corporation, has acquired a Type I Financial Instruments Business license under the Financial Instruments and Exchange Act from the Japanese regulatory authorities.

The approval will allow Liquid to commence derivatives trading on its platform, offering investment opportunities to both retail and institutional clients, although a specific date for launch was not disclosed.

Founded in 2014, Liquid is one of the world’s largest crypto-fiat exchanges with in excess of 800,000 customers and a reported highest daily trade volume of $1.1 billion across 2021. The platform operates under Japan's Payment Services Act via Quoine Corporation and has also applied for a license with the Monetary Authority of Singapore.

Liquid’s chief operating officer, Seth Melamed, shared his thoughts on the importance of attaining regulation within the sector:

“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.”

In mid-August this year, Liquid was the victim of a $97 million security hack on its hot wallets, although the company was keen to stress that users' wallet balances were not affected by the incident.

Hot wallets such as Metamask and Phantom are a method of storing and trading cryptocurrencies widely considered more susceptible to breaches than the offline alternative of cold wallets.

In the weeks following the targeted attack, the exchange announced positive news of a $120 million debt financing investment from FTX Trading, a subsidiary of FTX, in a bid to improve the exchange's balance sheet, support licensing endeavors in jurisdictions of Japan and Singapore, enhanced capital and liquidity generation, as well as customer support services.

Liquid exchange