Cryptocurrency exchange Huobi Global is seeking a license in Hong Kong as the Chinese special administrative region studies new regulatory and licensing measures that would allow it to serve retail clients.
The new framework, which requires exchanges to register with the Hong Kong Securities and Futures Commission (SFC), would allow the platform to expand its services to the city. Huobi also plans open a new subsidiary called Huobi Hong Kong that would focus on high net worth and individuals, according to a thread of tweets from Justin Sun.
Recently, The SFC has opened to popular consultation the new proposals for the granting of licenses in Hong Kong, whose new regime will enter into force in June. News of the planned changes had financial service providers lining up to participate in the new expanded system in December.
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 #Crypto pic.twitter.com/ktZw1WE2cs
— Huobi (@HuobiGlobal) February 20, 2023
Sun said in an interview with Nikkei Asia that Huobi may increase its staff in Hong Kong from 50 to 200 this year. Sun also said that Hong Kong’s friendlier stance towards cryptocurrencies and the possibility of retail sales motivated the expansion.
Huobi announced a layoff of 20% of its staff in January, characterizing it as part of the company’s restructuring after the Sun acquisition in October. The exchange announced in February that it was shutting down its Huobi Cloud Wallet in May, due to “product and strategic adjustments.”
According to Nikkei Asia, Huobi is also considering moving its headquarters from Singapore to Hong Kong.
Huobi is also expanding its services in other regions. In January, it announced the launch of a cryptocurrency debit card via a partnership with Visa that Huobi customers residing in the European Economic Area will be able to use around the world. The card is expected to be available in the second quarter of this year.
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