FTX has launched a Japanese arm to offer services to its customer base in Japan. The leading exchange recently surpassed Coinbase to become the second-largest centralized crypto exchange by trading volume.
FTX Japan Launches Despite Strict Regulations In Japan
In a press release on Thursday, FTX revealed that it had launched FTX Japan to offer a wide range of crypto services to residents in the Asian economic giant. Moreover, the statement revealed that the latest arm of the global exchange had received a Type 1 Financial Instruments Business license to operate in the country.
FTX’s latest move is the result of the acquisition of Liquid Group, a fintech and digital payments company by FTX in February. It is worth noting that just days ago, FTX chief Sam Bankman-Fried had alluded to the fact that acquisitions would form a key part of the company’s strategy.
“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,” SBF said, commenting on the achievement.
With FTX Japan, the firm will be able to offer spot and perpetual trading services for crypto investors in the Asian country. Additionally, investors would also be able to seamlessly use their fiat currency to deposit and withdraw on the platform. FTX obtaining a license in Japan is a remarkable feat because the Financial Services Agency (FSA) has committed to making licensing for crypto firms more difficult than other firms providing financial services in traditional markets.
“Japan is a highly regulated market with potential market size of almost $1 trillion when it comes to cryptocurrency trading. With the launch of FTX Japan, we will be able to bring additional products to this market, such as our perpetual and spot crypto trading. We look forward to further revolutionizing the Japanese digital asset ecosystem through FTX Japan,” said SBF speaking further on the achievement.
Crypto Firms Are Focusing On Obtaining Regulatory Approval In 2022
The beginning of this year has seen crypto firms gradually shift from a focus on advertising and visibility to pursuing regulatory approval globally. Crypto firms made headlines as they dominated ads at the Super Bowl this year.
Perhaps, the most welcoming region for crypto firms this year has been the Middle East, with FTX bagging a license in Dubai. On Thursday, reports also revealed that Crypto.com, another leading global exchange, had secured a license in Dubai, joining the likes of Binance and FTX as the popular tourist destination positions itself to become a crypto hub.
Meanwhile, besides the Middle East, Binance is also making headway in Europe, recently obtaining regulatory nods in May from France and Italy. Notably, the leading exchange through strategic hires of past top regulatory officials is rapidly moving towards becoming regulated across the globe.
