Japanese Regulatory Body Allows Trading Houbi Tokens (HT)

HT Becomes First International Exchange Token

HT is the first international exchange token that has been approved by the Japanese regulators.

Along with HT, the FSA has given permission of trading to other 25 tokens. Currently, Japan has been very strict regarding its regulation to better define crypto assets.

The Payment Services Act (PSA) and the Finacial Instruments and Exchange Act (FIEA) amended by the Japanese House of Representative in the year 2019, would be implemented in the country on May 01, 2020.

According to the Law Firm Morrison and Foerster LLP, the country has amended the laws to protect the crypto asset investors.

In its recent blog, the firm has mentioned that those custody providers who are not involved in trading of crypto assets would also be accountable to the PSA regulation.

The FIEA would also regulate the crypto-asset derivatives and other related businesses would have to register themselves under the Japanese crypto industry so that they could function smoothly.

After May 01, 2020, it would be important for custody crypto providers to register themselves as crypto exchange providers.

PSA And FIEA Amended In 2019

While amending the PSA, a suggestion regarding customer assets requirement was made, which stated that the users fiat custody protection should loom so that their deposits could be held in a trust account.

The PSA has also mentioned that it would important for the exchanges to keep their assets in cold wallets or any other wallet which is equivalent to it.

According to the PSA regulation, the assets kept in hot wallets should be 5 percent.

A report stated that the So & Sato, a Tokyo-based law firm, believes that the new crypto regulations would surely be beneficial for the new players in Japan in the long-term.

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