Huobi to launch Hong Kong site on June 1: report

Huobi Global announced plans to gear up for the launch of its Hong Kong division on June 1 for users in the city-state. The expansion comes against the backdrop of a decision by the Hong Kong securities regulator – the Securities and Futures Commission (SFC) – to allow retail trading in cryptocurrencies after a year of turmoil in the sector.

The new location, called Huobi Hong Kong, in China’s special administrative region, will “fully comply with local regulations and provide clients with a range of trading pairs and services.” At launch, users will be able to trade Bitcoin (BTC), Ether (ETH), Tron (TRX) and Huobi Token (HT).

,@ Huobi Global Officially with HK 🇭🇰 #B T c #ETH #TRX #HT,

– HE 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 last month following the company’s acquisition by the Abroad Capital buyout fund in November. It sought to establish a presence in the Caribbean.

The cryptocurrency exchange also said that it will also increase its investments in Southeast Asia, Europe and other regions, as well as explore strategic mergers and acquisitions to expand its ecosystem.

However, its attempt with the Malaysian regulatory agency hit a roadblock. The Securities Commission Malaysia (SCM) said in a statement on May 22 that Huobi Global failed to register as a crypto exchange operator and was ordered to cease all activities. It was also directed to disable its website and mobile applications on Apple Store and Google Play.

Hong Kong Web3 Advancement

Hong Kong reaffirms its stance to position itself as a regional crypto hub amid an industry-wide clout from the West after Financial Secretary Paul Chan Mo-po reiterated the city’s crypto commitments at the Hong Kong Web3 Festival in April .

To that extent, the SFC of Hong Kong issued a reports At a consultation on policy recommendations earlier this week, it agreed to enable licensed Virtual Asset Providers (VASPs) to cater to retail investors, provided the operators assess their understanding of the risks involved.

The guidelines for VASPs will include requirements in terms of asset custody protection, cyber security standards as well as segregation of customer assets. All platforms involved in the digital asset industry in Hong Kong are required to apply for a license under the new regime, which will result in fines and prison terms.