Huobi to Launch $1 Billion Incubator Fund for Chinese Blockchain Startups

Huobi, the third-largest cryptocurrency exchange in the world, is launching a $1 billion fund to finance Chinese blockchain-related startups. The move signals an effort to support the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term industry in China following a sweeping set of bans that effectively ended domestic cryptocurrency trading in the country.

The fund is a collaborative effort with Tinya Community Network Technology, a social networking platform based in Hainan.

According to a blog post by Huobi, the two companies are planning to form a “Global Cultural and Creative Blockchain Lab.” Huobi is also reportedly planning on moving its headquarters from Beijing to Hainan, further solidifying the strategic partnership.

Hainan Emerges as a Hotspot for Economic Innovation

Relocation to Hainan also offers some other strategic benefits. According to a report by the South China Morning Post, Chinese President Xi Jinping launched a plan to convert Hainan into a free-trade port, a move that could make the region fiercer competition for nearby trading hotspots Hong Kong and Singapore.

Xi has set his sights on Hainan as the countries “biggest special economic zone,” saying that the region’s geography and climate make it particularly well-suited to test out measures for economic reform.

“Against the background of the new era of Chinese socialist characteristics, we have given Hainan’s Special Economic Zone a new mission of economic reformation,” reads Huobi’s blog post.

Huobi Moves Forward in the Face of Restrictive Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term

Katt Gu, managing director at iBlock, said that “although China has banned ICOs, there are tons of blockchain-related projects like decentralized gaming apps being developed in China that have not issued ICOs. Huobi has set up the fund to invest in these promising projects as it doesn’t want to miss out on the trend.”

After the Chinese government outlawed domestic cryptocurrency exchanges in the last months of 2017, Huobi was forced to relocate some of its operations to Singapore. Since then, the company has begun the process of opening up offices in San Francisco. The exchange also recently announced plans to establish offices in London.

“Not Malta, not Switzerland. Absolutely London, more precisely Britain, is the entry point for the European market for us,” said Vice President of the Huobi Group, Peng Hu. Chern Chung, Huobi’s senior business development manager for Europe, said that the establishment of offices in London “shows Huobi’s commitment and determination to go mainstream,” and that “we are not afraid of regulation nor are we escaping regulation.”