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Huobi Global has announced preparations for the launch of its Hong Kong division on June 1st for users in the city. This expansion follows the decision by the Hong Kong securities regulator, the Securities and Futures Commission (SFC), to permit retail trading in cryptocurrencies after a year of challenges in the industry.
The new establishment in the special administrative region of China, named Huobi Hong Kong, will be “fully compliant with local regulations and provide a variety of trading pairs and services to customers.” At the time of launch, users will have the ability to trade Bitcoin (BTC), Ether (ETH), Tron (TRX), and Huobi Token (HT).
Huobi Rebranding and Expansion
As the initial phase of its expansion strategy, Huobi underwent a rebranding in November of the previous year following the company’s acquisition by About Capital Buyout Fund the month prior. The company aimed to establish a foothold in the Caribbean.
The cryptocurrency exchange also indicated plans to increase its investments throughout Southeast Asia, Europe, and other areas while concurrently exploring strategic mergers and acquisitions to broaden its ecosystem.
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However, its engagement with the Malaysian regulatory authority proved to be a setback. The Securities Commission Malaysia (SCM) stated on May 22 that Huobi Global did not register as a crypto exchange operator and was instructed to halt all operations. It was also mandated to deactivate its website and mobile applications on the Apple Store and Google Play.
Hong Kong Web3 Advancement
Hong Kong reaffirmed its commitment to advancing as a regional crypto hub amidst a broader industry crackdown in the West, as Financial Secretary Paul Chan Mo-po emphasized the city’s dedication to cryptocurrencies at the Hong Kong Web3 Festival in April.
In this context, Hong Kong’s SFC published a report earlier this week regarding the consultation on policy recommendations, agreeing to allow licensed virtual asset providers (VASPs) to serve retail investors, provided that operators evaluate an understanding of the associated risks.
The guidelines for VASPs will encompass requirements related to asset custody safety, cybersecurity standards, and the segregation of client assets. All platforms involved in the digital asset sector in Hong Kong must apply for licenses under the new framework, with non-compliance resulting in fines and potential imprisonment.
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