Huobi Global announced that it is preparing to launch its Hong Kong division on June 1 for users in the city-state. The expansion comes against the backdrop of Hong Kong’s securities regulator, the Securities and Futures Commission (SFC) decision, to allow retail cryptocurrency trading after a year of turmoil. in the sector.
The new location in China’s special administrative region called Huobi Hong Kong “will fully comply with local regulations and 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! https://t.co/vgxZTdYEYL
— HE Justin Sun 孙宇晨 (@justinsuntron) May 26, 2023
Huobi rebranding and expansion
As the first step in its expansion plans, Huobi underwent a rebrand in November last year after it was acquired by About Capital Buyout Fund the previous month. They sought to establish a presence in the Caribbean.
The cryptocurrency exchange also said that it will also increase its investments in Southeast Asia, Europe and other regions, while also exploring strategic M&A to expand its ecosystem.
However, his appointment with the Malaysian regulatory agency was a setback. The Securities Commission of Malaysia (SCM), in a statement on May 22, said that Huobi Global did not register as a crypto exchange operator and was ordered to cease all activity. It was also ordered to disable its website and mobile apps on the Apple Store and Google Play.
Hong Kong Web3 Preview
Hong Kong confirmed its stance of moving forward to position itself as a regional crypto hub amid an industry-wide crackdown in the West after financial secretary Paul Chan Mo-po reiterated the city’s crypto commitments at Hong Kong’s Web3 Festival. in April.
In this regard, the Hong Kong SFC published a report on consultation on policy recommendations earlier this week, agreeing to allow licensed virtual asset providers (VASPs) to serve retail investors, as long as traders assess understanding of the risks involved.
Guidelines for VASPs will include requirements in terms of asset custody security, cybersecurity standards, and segregation of customer assets. All platforms associated with the digital asset industry in Hong Kong must apply for licenses under the new regime, otherwise fines and prison terms would be imposed.
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