The regulatory changes in Hong Kong have not deterred the Huobi crypto exchange from deciding to relocate its Asia headquarters from Singapore to Hong Kong.
Huobi Shifts Asia Base
At a recent Huobi event, advisory board member Justin Sun spoke about how the crypto exchange is going ahead with its Hong Kong expansion by moving its Asia headquarters there. The crypto firm also has plans to increase its Hong Kong workforce. Furthermore, the company will also be applying for a crypto trading license to be able to successfully and legally run its Asia operations from the city. According to Sun, the move was motivated primarily by the region’s pro-crypto stance and possibilities of retail sales.
“These three years, Hong Kong’s regulatory framework has seen a lot of change for the better, so I am very confident in the future of crypto compliance in Asia, Hong Kong and hopefully China.”
He also mentioned that the Hong Kong government would have to maintain a stable and predictable regulatory environment to truly establish the region as a global crypto hub.
SFC Issues New Crypto Trading License
To conduct business in this special Chinese administrative region, all crypto exchanges must register with the Hong Kong Securities and Futures Commission (SFC) for a crypto trading license. Without the SFC’s approval, firms cannot legally offer crypto services to serve retail customers in the area. These new licensing requirements have been recently announced by the SFC and will be going into effect in June 2023. As a result, more and more financial services providers are lining up to be included in the new, expanded system in the region.
The Huobi team also announced this move on Twitter,
“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 And Justin Sun
Huobi was bought out by About Capital in a takeover last October. Even though the new owners were tight-lipped about the TRON CEO’s involvement in the company, it was revealed last month that the crypto exchange was being led by Justin Sun, a member of the firm’s Global Advisory Board.
Soon after, it was announced that the firm was planning to lay off 20% of its workforce due to company restructuring. Furthermore, Sun also had to address several rumors about insolvency and put them to bed by claiming that the firm has performed well despite the crypto winter.