Huobi Global said it is preparing to launch its Hong Kong division on June 1 for users in the city-state. The expansion comes amid a decision by Hong Kong’s securities regulator – Securities and Futures Commission (SFC) – to allow retail trading of cryptocurrencies after a turbulent year in the sector.
The new venue in the special administrative region of China called Huobi Hong Kong will be “fully compliant with local regulations and will offer a range of trading pairs and services to clients”. At launch, users will be able to trade Bitcoin (BTC), Ether (ETH), Tron (TRX), and Huobi Token (HT).
.@HuobiGlobal officially in HK 🇭🇰 with #BTC #ETH #TRX #HT!
— HE Justin Sun 孙宇晨 (@justinsuntron) May 26, 2023
Rebranding and expansion of Huobi
As part of the first stage of its expansion plans, Huobi underwent a rebrand in November last year after the company was acquired by About Capital Buyout Fund the previous month. He sought to establish a presence in the Caribbean.
The crypto exchange has also said that it will also increase its investments in Southeast Asia, Europe and other regions while simultaneously exploring strategic mergers and acquisitions to expand its ecosystem as well.
However, his appointment with the Malaysian regulatory agency was a setback. The Securities Commission Malaysia (SCM), in a statement on May 22, said Huobi Global had not registered as a crypto exchange operator and had been ordered to cease trading. It was also ordered to disable its website and mobile apps on Apple Store and Google Play.
Advancement of Web3 in Hong Kong
Hong Kong has confirmed its stance of moving forward to position itself as a regional crypto hub amid an industry-wide crackdown in the West after Finance Secretary Paul Chan Mo- po reiterated the city’s crypto commitments at the Hong Kong Web3 Festival in April.
To this extent, the Hong Kong SFC issued a report on the consultation on policy recommendations earlier this week, agreeing to allow licensed virtual asset providers (VASPs) to serve the needs of retail investors, provided operators assess their understanding of the risks involved.
Guidelines for VASPs will include requirements for asset custody security, cybersecurity standards as well as segregation of customer assets. All platforms associated with the digital asset industry in Hong Kong are required to apply for licenses under the new regime or face fines and jail time.
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