Huobi Global has announced that it is preparing for the launch of its Hong Kong division on June 1 for users in the city-state. The expansion comes in the backdrop of the Hong Kong securities regulator – Securities and Futures Commission (SFC) decision – to allow retail trading in cryptocurrencies came after a year of turmoil in the sector.
The new place in the special administrative region of China called Huobi Hong Kong will be “in full compliance with local regulations and offer a variety of trading pairs and services to customers.” At launch, users will be able to trade Bitcoin (BTC), Ether (ETH), Tron (TRX), and Huobi Token (HT).
.@HuobiGlobal officially in HK 🇭🇰 partner #BTC #ETH #TRX #HT! https://t.co/vgxZTdYEYL
— SHE Justin Sun 孙宇晨 (@justinsuntron) May 26, 2023
Huobi Rebranding and Expansion
As the first step in its expansion plans, Huobi underwent a rebranding in November last year after the acquisition of the company by About Capital Buyout Fund last month. It seeks to establish a presence in the Caribbean.
The crypto exchange also said it will also increase its investments across Southeast Asia, Europe, and other regions while simultaneously exploring strategic mergers and acquisitions to expand its ecosystem, as well.
However, its attempt by the Malaysian regulatory agency was a failure. The Securities Commission Malaysia (SCM), in a statement on May 22, said that Huobi Global failed to register as a crypto exchange operator and was ordered to cease all activities. It was also ordered to disable its website and mobile application on Apple Store and Google Play.
Web3 development in Hong Kong
Hong Kong reaffirmed its position to position itself as a regional crypto hub amid an industry-wide clampdown in the West after Financial Secretary Paul Chan Mo-po reiterated the city’s crypto commitments Web3 Festival in April.
To that extent, Hong Kong’s SFC released a consultation report on policy recommendations earlier this week, agreeing to allow licensed virtual asset providers (VASPs) to cater to retail investors, as long as the operators check to understand the risks involved.
The guidelines for VASPs will include requirements regarding asset custody safety, cybersecurity standards as well as segregation of client assets. All platforms related to the digital asset industry in Hong Kong will be required to apply for licenses under the new regime, failure to which will result in fines and prison terms.
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