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Huobi HK, the Hong Kong arm of the global trading platform, stated that it would start providing spot and managed services to business and retail clients in the region.
The exchange tweeted on Monday that it has formally sent a request for a virtual asset exchange license to the Hong Kong Securities Regulatory Commission.
Huobi Expands Offerings in Hong Kong
The exchange stated that it officially applied to the Hong Kong Securities Regulatory Commission on May 29. It aims to secure a license to operate as a virtual asset exchange.
According to the exchange’s translated statement, Huobi HK intends to work with independent auditors. It plans to strengthen the platform’s security procedures over six months. Huobi HK stated that anti-money laundering methods and compliance practices would be improved to comply with local regulations.
Huobi HK is gearing up to expand its crypto offerings after its global parent was pulled up in Malaysia. Last week, the Malaysian Securities Commission (SC) ordered Huobi Global to cease operations because it operated without a permit. According to the SC, Huobi has been conducting business without a Recognised Market Operator license. The authority said a license is necessary to adhere to regional laws and safeguard investors.
Huobi Malaysia was barred from advertising in Malaysia. In addition, it had to block user access to the exchange’s apps on digital platforms.
Hong Kong Implements New Rules
Beginning on June 1, Hong Kong will establish a new licensing system for companies offering virtual asset services. This suggests that Hong Kong is welcoming cryptocurrency businesses. It is also allowing regular investors to trade popular cryptocurrencies while implementing specific local laws.
The Hong Kong Monetary Authority chief Eddie Yue emphasized last month that cryptocurrency businesses are welcome in Hong Kong. However, they shouldn’t anticipate lax rules, the official had noted.
Getting a virtual asset provider license in Hong Kong appears to be a difficult task. Every token listed on an exchange will be examined, and market-making will not be allowed. Cryptocurrency exchanges will need to have complete insurance coverage.
Justin Sun, the CEO of TRON, reportedly aimed to move the Asia headquarters of Huobi from Singapore to Hong Kong, according to a February story in Nikkei Asia. It also mentioned Sun’s plans to increase Huobi’s operations in Hong Kong as the area contends to be a leader in crypto. In addition, Huobi reportedly looked at expanding the staff headcount from 50 to 200 by the end of the year.
That said, BeInCrypto recently revealed that Huobi’s market share has grown as a result of snatching business from top exchanges like Binance. Huobi has gained 8% of the volume from the 18% Binance lost to Asian players. Huobi Global ranks twelfth in volume, according to Coin Ranking data. It has a daily trading volume of approximately $400 million at the time of publication.