Exciting Developments for Liquid Exchange
Japanese cryptocurrency exchange Liquid has taken a momentous step in the financial world with its subsidiary, Quoine Corporation, successfully acquiring a Type I Financial Instruments Business license. This significant achievement under the Financial Instruments and Exchange Act marks a new era for Liquid and its dedicated clientele.
What Does This Mean for Traders?
With this fresh license in hand, Liquid is set to launch derivatives trading, promising an array of investment options tailored for both retail and institutional investors. Though the exact launch date is shrouded in mystery, the anticipation builds among the 800,000+ users who have reigned in the crypto arena with Liquid. It’s like waiting for your favorite band to announce a concert date—excitement tinged with anxiety!
A Brief History of Liquid
Founded in 2014, Liquid has rapidly emerged as a titan among crypto-fiat exchanges, boasting a jaw-dropping highest daily trade volume of $1.1 billion in 2021. Operating under Japan’s Payment Services Act via Quoine Corporation, it’s evidenced that they’ve navigated the waters of regulation like seasoned sailors. Not resting on its laurels, Liquid has also applied for a license with the Monetary Authority of Singapore, signaling its ambitious expansion goals.
Regulation: The Name of the Game
“The Type 1 license issuance is the culmination of a great deal of preparation and collaboration by the entire Liquid team. It is also a validation that trading derivatives in crypto can be done in a compliant manner with full customer protections & transparency.” – Seth Melamed, COO of Liquid
In a sector often criticized for its lack of regulatory oversight, Liquid’s achievement highlights the importance of compliance. It’s not just about the thrill of trading; it’s also about creating a safe environment for trading derivatives in the crypto space.
Overcoming Obstacles: The $97 Million Hack
Despite the good news, Liquid’s journey hasn’t been without its bumps. In mid-August, the exchange fell victim to a massive $97-million hack. Thankfully, user wallet balances remained untouched, which is akin to finding out that your favorite sandwich was safe during a lunchroom food fight—what a relief!
Financial Boost: The $120 Million Lifeline
In the wake of the hacking incident, Liquid managed to secure $120 million in debt financing from FTX Trading. This funding not only aims to bolster its balance sheet but also to enhance capital generation, liquidity, and customer service. It’s all about bouncing back stronger, and Liquid is well on its way!
