Huobi Global, a cryptocurrency exchange, has announced the launch of its Hong Kong division on June 1st for users in the city-state. The Securities and Futures Commission (SFC), Hong Kong’s securities regulator, recently allowed retail trading in cryptocurrencies after a year of turmoil in the sector. The new venue called Huobi Hong Kong will be “fully compliant with local regulations and offer a range of trading pairs and services to customers.” Upon its launch, users will be able to trade Bitcoin (BTC), Ether (ETH), Tron (TRX), and Huobi Token (HT).
Huobi underwent a rebranding in November last year after it was acquired by About Capital Buyout Fund the previous month. The company sought to establish a presence in the Caribbean. The crypto exchange also plans to ramp up its investments across Southeast Asia, Europe, and other regions while simultaneously exploring strategic mergers and acquisitions to expand its ecosystem.
However, Huobi Global’s recent tryst with the Malaysian regulatory agency was a setback. The Securities Commission Malaysia (SCM) issued a statement on May 22, stating that Huobi Global failed to register as a crypto exchange operator and was ordered to cease all activity. The exchange was also directed to disable its website and mobile applications on Apple Store and Google Play.
Hong Kong’s Crypto Commitments
Hong Kong aims to position itself as a regional crypto hub amidst an industry-wide clampdown in the West. Financial Secretary Paul Chan Mo-po reiterated the city’s crypto commitments at the Hong Kong Web3 Festival in April. Hong Kong’s SFC released a report on the consultation on policy recommendations earlier this week, agreeing to enable licensed virtual asset providers (VASPs) to cater to retail investors, provided that operators assess an understanding of the risks involved. The guidelines for the VASPs will include requirements in terms of asset custody safety, cybersecurity standards, as well as the segregation of client assets.
All platforms associated with the digital asset industry in Hong Kong are required to apply for licenses under the new regime, failing which would result in fines and jail terms. The move comes amidst regulatory turmoil in the sector, as governments worldwide grapple with the regulation of the burgeoning cryptocurrency industry. Huobi Global’s expansion into Hong Kong is a significant step towards the company’s continued growth in the region, as it seeks to establish a presence in key markets worldwide.