Huobi Token has reportedly granted regulatory greenlight by the Japanese Financial Services Agency (FSA), after HT was recognized as tradable crypto asset on the major crypto asset market, starting May.
Specifically, Huobi Token has joined 25 previous tokens to be whitelisted by FSA up to now, amid the time when Japan is applying a tighter regulatory grip, for a better definition of crypto assets.
In 2019, the Japanese House of Representatives has reportedly conducted revision on the Payment Services Act (PSA) and Financial Instruments and Exchange Act (FIEA), which will be officially enacted beginning May 1st.
Law firm Morrison & Foerster LLP reportedly claimed that a few of the changes will provide an enhanced level of protection for investors in crypto assets.
The firm further revealed that businesses offering custody services, who are not associated with selling, purchasing, and intermediating the sale of crypto assets, will fall under the regulatory scope of the new PSA regulations.
The FIEA regulation reportedly also runs auditing on crypto asset derivatives, and companies working in the field are required to fulfill registration, in order to be normally operable within the Japanese crypto sector.
Crypto-asset derivatives transactions that use crypto assets for settling, will also be under the FIEA, instead of the PSA like before.
Moreover, exchanges are reportedly obligated to store digital assets in cold wallets or their equivalent.