thecoinrepublic.com
- Huobi Global plans to relocate its office from Singapore to Hong Kong.
- Huobi is ready to file for a Virtual asset service provider license in Hong-kong.
Huobi Global, a leading cryptocurrency exchange, has planned to shift its Asia headquarter from Singapore to Hong Kong and is ready to apply for a VASP license (Virtual asset service provider) under Hong Kong financial regulators.
Most attorneys believed that the SEC’s recent enforcement against Justin Sun would affect Huobi Global’s aim of relocating its headquarter to Hong-kong.
Justin stated that he believes the U.S. fraud charges will not affect Huobi’s business plans in Hong Kong in any possible way. As per the company’s spokesperson, there is no change in the plan to shift the headquarter.
Hong Kong is pushing its limits to construct a crypto-friendly environment in its territory. It plans to introduce a new set of rules in June 2023 requiring crypto trading platforms to be licensed by the Securities and Future Commission.
The U.S. Securities and Exchange Commission (SEC) recently filed a lawsuit against Justin Sun and his three companies, including Tron Foundation Limited, BitTorrent Foundation Ltd., and Rainberry Inc.
In the same case, SEC charged 8 celebrities for illegally touting BTT and TRX. Lindsay Lohan, Autin Mahone, Shaffer Smith, Michele Mason, Aliaune Thiam, Jake Paul, Miles Paul, and DeAndre Cortez Way. It is important to note that the celebrities have revealed the amount they were paid for promoting BTT and TRX.
According to the SEC’s press release, the financial regulators have charged Sun’s company “with fraudulently manipulating the secondary market for TRX through extensive wash trading.”
TheCoinRepublic earlier reported that the Securities and Exchange Commission complaint has been filed in the U.S. District Court for the Southern District of New York. The complaints state, “Justin’s, BitTorrent Foundation, and Rainberry offered and sold BTT in unregistered monthly airdrops to investors.”
Justin Sun is a 32-Year-old Chinese crypto entrepreneur, a majority stakeholder of Huobi global, and a permanent member of the Representative of Grenada to the World Trade Organization. A virtual asset service provider license is permission issued by financial authorities to trade cryptocurrencies in a specified territory.
Also, Hong Kong is the first option for wealthy Chinese to withdraw their capital from the isolated mainland. Estimates suggest they moved around $500 Billion in the economic zone to gain access to the global financial system. Although Hong Kong will not enable truly decentralized crypto applications and self-storage yet, the inflows of new funds could be positive for crypto markets.
Though, it is still unconfirmed when the SFC will end its consultation process for allowing access to retail investors. On the other hand, if Hong Kong reopens its operation, then massive fresh funds inflows can be seen in the crypto market.
Hong Kong is the world’s fourth largest financial center, followed by New York, London, and Singapore. This could make the city one of the largest capital hubs in the world.