The Huobi Exchange is planning to expand its operational roots in Hong Kong. In a bid to offer its services to retail customers, Huobi is seeking relevant licences in the Chinese special administrative region. The exchange has reached out to the Hong Kong Securities and Futures Commission (SFC) as part of its registration process. The development comes after Hong Kong was recently named as the most crypto ready nation in the world as per Forex’s Worldwide Crypto Readiness Report.
Huobi’s long term plans include the establishment of an entirely new body called the Huobi Hong Kong exchange with its focus intact on catering to hefty individual investors and institutional investors.
Justin Sun, the founder of the Tron altcoin as well as an advisor for Huobi shared the development on Twitter.
The new exchange will focus on providing trading services for institutional investors and high net worth individuals in Hong Kong :flag-hk:. It positions the exchange as a trusted and secure platform for larger investors in Asia who are looking to enter the crypto market.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) February 20, 2023
Soon after, the Huobi Token (HT), which is the native token of the Huobi exchange, began surging in prices.
In the last 24 hours, the HT rose in value by 16 percent. At the time of writing, its value stood at $6.12 (roughly Rs. 506) as per CoinMarketCap.
Exciting news! 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 #Crypto pic.twitter.com/ktZw1WE2cs
— Huobi (@HuobiGlobal) February 20, 2023
For Huobi, the decision to find ground for itself in the world’s most crypto-ready nation comes after the company survived a rough crypto winter.
The exchange recently laid off 20 percent of its workforce owing to the market slump that wiped off over $200 billion (roughly Rs. 16,55,300 crore) from the industry.
With Hong Kong tightening the noose around crypto businesses, its authorities are aiming to ensure that crypto investors as well as firms are protected against getting exposed to financial risks.
Hong Kong has observed a 105 percent hike in crypto scams in the first six months of this year. Between January and July 2022, the crypto community in Hong Kong has collectively lost $50 million (roughly Rs. 400 crore) to conmen.
In December 2022, Hong Kong amended its Anti-Money Laundering (AML) and Counter-Terrorist Financing (Amendment) Bill 2022 to include crypto transactions as well.
The step aims to ensure that crypto assets are not misused by criminals for moving illicit funds.
