Huobi Takes Over Its Australian Subsidiary Amid Market Slump

Major crypto exchange Huobi has become the latest victim of the so-called “Crypto Winter” as its Australian subsidiary has subsumed under the global wing.

Huobi Australia announced the takeover via a Tweet on February 25.

Please be informed that starting 26th February 2019, all operations, including the management of our platform, social media channels and customer support will be managed by our team at Huobi Global headquarters. pic.twitter.com/JP1lInoblt

— HuobiAustralia (@HuobiAu) February 25, 2019

Explaining the sudden move, Huobi’s Australian arm noted on its Facebook page: “Please be informed that due to poor market conditions and associated recent staff redundancies here at Huobi Australia, all operations, including the management of our platform, social media channels and customer support will be managed by our team at Huobi Global headquarters starting 26th February 2019.”

Further elaborating the exchange’s future move in the Australian market, the post added: “We have decided not to explore adding a fiat on-ramp but rather will keep the exchange in its current coin-to-coin format. We have therefore decided to forgo our AUSTRAC registration as it is only required for fiat on-ramps.”

Dominant Bear Turned Out to be a Massive Issue

Huobi’s operational concerns in the slumped market surfaced last December, as the exchange revealed that it was going to cut short its “worst-performing employees” from its workforce rather than the pre-planned restructuring of the organization.

Huobi is not the only exchange or 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 business to be affected by plunging crypto prices as Chinese crypto mining hardware manufacturer Bitmain and Canadian crypto exchange Coinsquare were also forced to take similar steps in recent months.

Will the Growth Sustain?

However, despite the slow down, Huobi Global has doubled its trading volume in 2018 compared to the recorded numbers in 2017. The Singapore-headquartered exchange’s CEO Leon Li also revealed that it has expanded significantly in 2018 and added hundreds of staff as the headcount went from 400 in early 2018 to more than 1,300 in 2019.

Huobi also launched a digital asset derivative Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term - Huobi Derivatives Market (Huobi DM) - last December and, as reported by Finance Magnates at the time, the trading volume in the platform touched $12 billion within a month and surpassed the $20 billion mark just a few days later.

The cryptocurrency exchange also made its presence stronger in Russia with the opening of a new office and the launch of the Russian version of its platform last November.