{"id":359258,"date":"2021-10-28T15:54:32","date_gmt":"2021-10-28T12:54:32","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/crypto-exchange-liquid-attains-japanese-derivatives-license\/"},"modified":"2021-10-28T15:54:32","modified_gmt":"2021-10-28T12:54:32","slug":"crypto-exchange-liquid-attains-japanese-derivatives-license","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/crypto-exchange-liquid-attains-japanese-derivatives-license\/","title":{"rendered":"# Crypto exchange Liquid attains Japanese derivatives license"},"content":{"rendered":"

“# Crypto exchange Liquid attains Japanese derivatives license <\/strong>”
\n<\/p>\n

Japanese cryptocurrency exchange Liquid has announced<\/a> 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.<\/p>\n

The app<\/a>roval will allow Liquid to commence derivatives trading on its platform and offer investment opportunities to both retail and institutional clients, although a specific launch date was not disclosed. <\/p>\n

Founded in 2014, Liquid is one of the world\u2019s 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\u2019s Payment Services Act via Quoine Corporation and has also applied for a license with the Monetary Authority of Singapore.<\/p>\n

Liquid chief operating officer Seth Melamed shared his thoughts on the importance of attaining regulation within the sector:<\/p>\n

\u201cThe 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.\u201d<\/p><\/blockquote>\n

Related:<\/em><\/strong> Hacked Liquid exchange receives $120M debt funding from FTX<\/em><\/strong><\/p>\n

In mid-August this year, Liquid was the\u00a0victim of a $97-million security hack on its hot wallets, although the company was keen to stress that users\u2019 wallet balances were unaffected by the incident.<\/p>\n

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.<\/p>\n

In the weeks following the targeted attack, the exchange announced positive news<\/a> of a $120-million debt financing investment from FTX Trading, a subsidiary of FTX, in a bid to improve the exchange\u2019s balance sheet, support licensing endeavors in jurisdictions of Japan and Singapore, enhanced capital and liquidity generation, as well as customer support services. <\/p>\n