In light of potential new licensing and regulatory measures in the Chinese special administrative region, Huobi Global is intending to secure a license in Hong Kong to expand its services to retail customers.
A new regulatory framework has been implemented in Hong Kong that mandates cryptocurrency exchanges to register with the Hong Kong SFC in order to broaden their services within the city. The SFC has recently opened the new licensing proposals to the public for feedback and is planning for the new regulations to become effective in June.
Consequently, financial service providers, such as cryptocurrency exchanges like Huobi, are queuing up to register under the new laws.
In addition to pursuing a license under the new regulations, Huobi aims to launch a new cryptocurrency exchange named Huobi Hong Kong, targeting high-net-worth retail investors and institutions. Justin Sun, the founder of Huobi, disclosed in an interview with Nikkei Asia that the exchange is also planning to expand its Hong Kong workforce from 50 to 200 by year-end.
According to Sun, the more supportive approach towards cryptocurrency in Hong Kong and the recent regulation that enables retail investors to participate in crypto are the primary driving forces behind the planned expansion. Additionally, Huobi has announced the launch of a Visa-backed crypto-to-fiat debit card for its customers in the European Economic Area.
