Huobi Japan is a centralized cryptocurrency exchange that was based in Japan in 2018. The company behind the platform is Huobi Japan Holdings, a wholly-owned Japanese subsidiary of major Singapore-based cryptocurrency exchange Huobi founded in 2013. Huobi was initially founded in China by Leon Li but had to move to Singapore after Beijing’s crackdown on domestic crypto-fiat exchanges in September 2017. The company acquired huge popularity after the closure of BTCC. At the time of writing, Huobi Group with an accumulative turnover that surpassed 3 trillion USD serves traders across 170 countries of the world. In 2018, Huobi became a publicly-listed Hong Kong company after a procedure of a reverse takeover chosen by many companies to avoid a durable procedure of an IPO.
As for the Japanese platform, it was launched as a fully compliant legal entity after a merger. As it has been mentioned above, the company purchased a majority stake in a local cryptocurrency exchange BitTrade in September 2018. At that time, BitTrade was one of 16 exchanges approved by the regulatory bodies of Japan (FSA). However, in February 2019, the platform changed the name BitTrade to Huobi Japan.
Huobi Japan exchange targets the customers of the Far East. The focus of its business efforts was shifted to this area after it stopped operations on the US-based platform due to the restrictions imposed by local regulators forbidding Americans to access its services. Huobi is committed to a global compliance strategy to provide a safe and secure trading environment for its customers. Therefore, it has chosen to work closely with the FSA to attain full compliance with regulators.
Huobi Japan technologies
The platform features specialized distributed architecture. The use of a sophisticated multi-layer and multi-cluster system architecture helps to increase the performance, security, and stable work of the system solving a range of problems that usually occur in similar systems including computing data disconnection, data instability, etc. Offering many different markets, the Huobi ecosystem can take advantage of the joint work of its infrastructure units. In July 2018, Houbi Cloud was officially launched to provide a one-stop solution for digital exchanges as it delivers the tools to partners for establishing its own OTC and currency exchange platforms. In 2018, the company also launched its derivatives market Huobi DM, where a new partial liquidation function was introduced later in March 2020.
Huobi Mining Pool is one of the products of the company that considers that mining pools should provide comprehensive services to miners. In the opinion of Huobi developers, it should become a model for traditional mining pools to reshape into pools of such kind. The developers try to create a digital asset production platform delivering one-stop services ranging from production to sale, to token producers who rely upon such production mechanisms as POW, POS, DPOS, etc. Huobi Mining Pool delivers a stable, transparent, and safe open business platform, and provides wallets to miners. These wallets feature built-in mining services that enable miners to obtain a stable revenue as they store tokens via the built-in mining business of their wallets.
The technological prowess of Huobi Mining Pool helps to deliver technical services to different main chains that include smart contract drafting, upgrading and maintenance, fixing vulnerabilities, liquidation and settlement along with other services. Being the brand of the Huobi Group, Huobi Mining Pool is involved in the ecosystems of diverse digital currencies and is devoted to the stable and safe performance of different kinds of currency chains protecting users’ assets. The technologies involved include the FPPS settlement model that increases the miners’ income significantly.
The platform providing technical services for different blockchains charges certain fees including node rewards. Huobi Japan launches such services as computing power hedging, cloud computing power, for which the fees are charged.
As for security, the platform employs a Distributed Denial of Service (DDoS) attack countermeasures system, and A+ ranked SSL certification, which is the highest of all available.
Huobi Token (HT)
On June 16, 2020, Huobi Group announced the issuance of Huobi Token (HT) which is a native token of the Huobi ecosystem. This is a proprietary ERC20 token designed to reduce the fees paid by its holders for trading on the platform and is used in a voting system when new tokens are added to the exchange.
It was listed on Huobi Japan as a fully compliant cryptocurrency asset. Huobi token has become the first global exchange cryptocurrency token that has received regulatory approval for trading by the Financial Services Agency (FSA).
With the help of its own token, Huobi implemented its loyalty program to provide discounts to members of the VIP program in which it accepts HT token in return for membership. Also, Huobi wanted to create the most stable token possible. The company runs a program to buy back tokens on the market, using 20% of its profits for this. This program is designed to contain future token inflation.
At the time of writing, Huobi Japan offers 9 cryptocurrencies and 20 trading pairs with BTC/JPY among them, which is the most popular trading pair.
Huobi Japan team and partnerships
The dedicated and highly qualified members of the team ensure the operation of the platform around the clock. Little is known about the personalities working for the company as their LinkedIn profiles are hidden with exception of Haiteng Chen, CEO of Huobi Japan who is a public figure and often comments on the news of the exchange in mass media.
Huobi Japan partners with Tokai Tokyo Financial Holdings, Japanese Financial Services Firm that invested 500 million Japanese yen or 4.6 million USD in the cryptocurrency platform, which is only a part of a broader collaboration with Huobi Japan. Tokai plans to use the partnership for the promotion of its new businesses in the areas of cryptocurrency asset exchange, IEOs, local currency issuance, crypto management, and cryptocurrency storage services.
Also, one of the investors is Financial Products Group (FPG), a financial instruments business operator that invested 5 million Japanese yen to Huobi Japan in October 2019. The companies united their efforts to provide support for new financial assets and payment methods.