As the crypto winter deepens, the world’s second-largest crypto exchange by trade volume, FTX, is expanding, while many others are feeling the squeeze. FTX just surpassed Coinbase as the second-largest cryptocurrency exchange.
FTX stated on June 2 that it would open an exchange in Japan to serve Japanese crypto traders and investors, with fast deposits and withdrawals in the Japanese Yen.
Japan has stringent regulations for crypto exchanges wishing to operate there. The country’s crypto regulator commissioner, the Financial Services Agency (FSA), acknowledges that it makes things “very difficult” for exchanges. FTX Japan K.K. is a regulated Japanese cryptocurrency exchange with a Type 1 Financial Instruments Business license.
Last year, the exchange’s U.S. branch purchased cryptocurrency derivatives platform LedgerX to get Ledger’s license to offer bitcoin fractional derivatives contracts. In 2020, the exchange bought Blockfolio, mobile news, and portfolio tracking app, and renamed it FTX a year later.
According to FTX’s CEO Sam Bankman-Fried, the company’s most recent purchase allowed it to use Liquid’s status as an already licensed crypto-asset exchange services provider, which was vital to the company’s development in the nation.
“The acquisition not only gives us a technological advantage but also allows us to work directly with Japanese regulators in a transparent, constructive, and positive manner,” Bankman-Fried said in the statement.
He further said that Japan is a highly regulated industry with a crypto trading sector worth about $1 trillion. In addition, the company intends to provide derivatives such as perpetual contracts.
Key Points to Remember
- According to FTX CEO Sam Bankman-Fried, the Japanese crypto sector has a potential worth of $1 trillion.
- Because of its Type 1 Financial Instruments Business license, the exchange will be able to provide both spot and derivatives products.
