In a strategic move, Huobi Global has announced its preparations for the launch of its Hong Kong division on June 1st, catering specifically to users in the city-state. This expansion comes in the wake of the Securities and Futures Commission (SFC) of Hong Kong’s decision to allow retail trading in cryptocurrencies, signaling a significant shift after a tumultuous year for the industry.
Huobi Hong Kong, the new venue situated in the special administrative region of China, aims to be fully compliant with local regulations while offering customers a wide range of trading pairs and services. Upon its launch, users will have the opportunity to trade popular cryptocurrencies such as Bitcoin (BTC), Ether (ETH), Tron (TRX), and Huobi Token (HT).
This venture marks the initial step in Huobi’s expansion plans, following a rebranding effort in November of the previous year, after being acquired by About Capital Buyout Fund. The company sought to establish its presence in the Caribbean market. Furthermore, Huobi intends to intensify its investments across Southeast Asia, Europe, and other regions, while simultaneously exploring strategic mergers and acquisitions to expand its ecosystem.
However, Huobi faced a setback in its engagement with the Malaysian regulatory agency. On May 22nd, the Securities Commission Malaysia (SCM) issued a statement declaring that Huobi Global had failed to register as a crypto exchange operator, resulting in an order to cease all activities. Additionally, the SCM directed the company to disable its website and mobile applications available on the Apple Store and Google Play.
Despite these challenges, Hong Kong remains committed to positioning itself as a leading crypto hub, amidst a broader industry crackdown in the Western world. Financial Secretary Paul Chan Mo-po reinforced the city’s dedication to cryptocurrencies during the Hong Kong Web3 Festival in April.
In line with this objective, the SFC of Hong Kong recently released a report outlining policy recommendations. The report allows licensed virtual asset providers (VASPs) to serve retail investors, provided that operators demonstrate an understanding of the associated risks.
Guidelines for VASPs will include requirements concerning asset custody safety, cybersecurity standards, and client asset segregation. All digital asset platforms in Hong Kong must apply for licenses under the new regulatory framework, failure to comply could result in fines and potential jail terms.
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