Crypto exchange giant Huobi Group is set to make a return to the US market after securing a trust license. This was revealed by Huobi in a Tuesday filing with the Hong Kong Stock exchange.
US Operations to Begin In 2021
Huobi revealed that the trust license was issued by the Nevada Financial Institutions Division for its subsidiary Huobi Trust Company. The license means that the company would be able to offer crypto custodial and compliance services in the US in 2021.
Huobi has begun plans to launch operations in the early part of 2021. And appointed Simon Collier to head the Nevada-based Huobi Trust Company and the firm Huobi had earlier left the US markets in 2019, citing regulatory concerns. However, the exchange had revealed at the time that it was looking to create a platform that would be more compliant with US laws and regulations.
Earlier in April, Huobi chief Ciara Sun had stated that the exchange was contemplating partnering with a fully regulated brokerage to offer crypto services in the US.
The move is part of Huobi Group’s efforts to launch regulated financial products and services in the states. “The announcement is a key step forward in the company’s ambitious plans to expand its recognized brand and products to a global audience, as well as its ongoing initiative to establish a suite of regulated financial products and services in the blockchain space,”
Major Development for Huobi
The move also comes at a time that the US is becoming stricter with its financial laws on crypto exchanges across the county. Many international crypto exchanges have been denied in their request to acquire licenses from state regulators in the US.
With the approval of the trust license, Huobi can offer crypto services in the US and has been exploring different ways to reenter the US market. The US is one of the largest crypto markets in the world and is dominated by major players like Coinbase and Gemini.
Huobi is one of the largest exchanges in the world and has been looking to expand its operations in recent months. BTCManager had revealed in November that Huobi was pursuing the acquisition of Korean exchange Bithumb and Japanese exchange Bitflyer.