Cryptocurrency exchange Huobi Global is seeking a license in Hong Kong
Luisa Crawford Feb 23, 2023 09:56
Singapore-based cryptocurrency exchange Huobi is considering expanding into Hong Kong, where regulatory changes are underway.
The cryptocurrency exchange known as Huobi Global is now in the process of applying for a license in Hong Kong, which comes at a time when the Chinese special administrative region is mulling over potential licensing and regulatory changes that would enable it to work with retail clients.
The new regulatory framework, which stipulates that cryptocurrency exchanges must register with the Securities and Futures Commission (SFC) of Hong Kong, would make it possible for the exchange to extend its service offerings to include the city. According to a thread that was started on Twitter by Justin Sun, Huobi intends to launch a new exchange in Hong Kong that will be called Huobi Hong Kong and would cater mostly to high-net-worth people and institutions.
The Securities and Futures Commission (SFC) only just made the new Hong Kong licensing proposals available for public comment, and the new regulations are scheduled to take effect in June. As soon as suppliers of financial services heard about the impending adjustments, they began making preparations to participate in the upgraded system in December.
During an interview with Nikkei Asia, Sun said that Huobi may raise the number of employees working out of its Hong Kong office from 50 to 200 this year. He said that the move was prompted by Hong Kong's favorable position on cryptocurrency as well as the prospect of retail sales.
In January, Huobi said that as part of the firm's reorganization after Sun's acquisition of the company in October, they would be laying off twenty percent of its workforce. The cryptocurrency exchange said in February that it would "strategic and product modifications" be the reason why its Huobi Cloud Wallet will be discontinued in May.
According to Nikkei Asia, Huobi is reportedly looking into the possibility of relocating its headquarters from Singapore to Hong Kong.
Huobi is also working to extend its service offerings in a number of other locations. It was revealed in January that the company is going to create a crypto-to-fiat debit card supported by Visa. Customers of Huobi who live in the European Economic Area will be able to use this card everywhere Visa is accepted. It is anticipated that you will be able to purchase that card around the second quarter of this year.
Image source: Shutterstock