Huobi, a major crypto exchange founded in China, has revealed its plans to obtain regulatory approval in Hong Kong to provide digital asset trading services in the Chinese special administrative region. The decision came just a day after the local Securities and Futures Commission (SFC) announced it is considering changes in its current regulation allowing retail traders to trade crypto in the region.
Huobi Wants to Open Huobi Hong Kong Crypto Exchange
As reported by Finance Magnates on Monday, starting from 1 June 2023, any centralized virtual asset trading platform that conducts business in Hong Kong or targets Hong Kong investors must obtain a license from the SFC under a new licensing system.
Additionally, the local regulatory watchdog launched a public consultation regarding the newest regulatory regime and sought comments on the potential admission of retail investors to the crypto market. Currently, only professional traders and institutions can access a limited scope of digital assets.
"Huobi is stoked about Hong Kong's pro-crypto policies & we're working hard to secure our crypto license there. Our aim is to be one of the first fully compliant exchanges in HK & collaborate with our Asia-Pacific users to drive digital asset growth," Huobi wrote on its official Twitter channel.
Justin Sun, the Founder and current CEO of Huobi, revealed in a separate series of tweets that his company wants to launch a new crypto exchange in Hong Kong, called Huobi Hong Kong, which "will be fully compliant with local regulations." For now, institutional investors and high-net-worth individuals will be its primary focus point.
Interactive Brokers, a publicly-listed electronic trading services provider, is another major company that decided to join Hong Kong's crypto market. The decision was revealed last week and came with a growing interest among the broker's clients.
Watch the recent FMLS22 panel on forex and crypto trends in 2023.
Huobi Global Rebranding and Workforce Cuts
The newest announcement was heralded when the crypto trading platform reduced its current staff by 20%. In January, the China-founded and Seychelles-based exchange revealed that it intends to maintain "a very lean team" to fight the current bear market and the prolonged cryptocurrency winter.
In the meantime, Huobi refreshed its branding and changed its official name from 'Huobi Global' to 'Huobi'. The newest branding strategy unites with the global expansion plans and the recent acquisition by About Capital, a Hong Kong-based buyout fund.
"Huobi will keep focusing on creating cutting-edge assets and supporting assets with strong market potential, as well as empowering communities built on projects. In keeping with the spirit of using science and technology for good, Huobi will strive to build a safer and more stable environment for users to participate in early-stage quality projects," Huobi commented in a press release.
Additionally, Huobi announced in September 2022 that it gained regulatory approval from the Financial Services Commission (FSC) for the British Virgin Islands. FSC license was granted to Huobi's local subsidiary, Brtuomi Worldwide Limited (BWL). BWL's authorization allowed the company to offer institutional-grade crypto derivative products in the region.
