Home News Crypto exchange Liquid attains Japanese derivatives license

Crypto exchange Liquid attains Japanese derivatives license


A subsidiary of the Japanese Bitcoin (BTC) exchange Liquid, Quoine Corporation, has received a license to trade financial instruments on the local market. The approval of the regulator will allow it to offer cryptocurrency derivatives to retail and institutional clients.

According to the press release, on October 26, Quoine Corporation was registered as a “Type I Financial Instruments Business”. Thus, in accordance with Japanese law, this license covers a fairly wide range of operations. From market trading in derivatives to underwriting securities and organizing Over-The-Counter (OTC) transactions.

“The approval of the first type of license is the culmination of extensive preparation and cooperation of the entire Liquid team. It is also a confirmation that trading in cryptocurrency derivatives can be carried out in accordance with the requirements of the law and with full protection of customers;” said Seth Melamed, Chief Operating Officer of Liquid.

One of the world’s largest crypto-fiat exchanges

Founded in 2014, Liquid is one of the world’s largest crypto-fiat exchanges. Moreover, with over 800,000 clients and the highest daily trade volume of $1.1 billion in 2021.

Earlier in November 2020, the exchange leaked user data. According to Liquid CEO Mike Kayamori, the hosting provider handed over the management of the exchange’s account and domain to an attacker.

In addition, the platform has a license from the Monetary Authority of Singapore and operated under Japan’s Payment Services Act via Quoine Corporation.

Debt financing from FTX

Previously in August 2021, Liquid reported the hacking of hot wallets. Therefore, the hacker withdrew over $80 million worth of digital assets from the platform.

Later in the same month, the Bitcoin exchange raised $120 million in debt financing; from the operator of the FTX crypto derivatives platform. The companies expressed interest in finding new opportunities for cooperation, according to a press release.

“FTX support will accelerate the implementation of the roadmap for the introduction of new products in Japan and Singapore;” commented Seth Melamed. The financing will provide Liquid with critical liquidity to comply with regulatory requirements.

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