The Seychell-based crypto exchange Huobi intends to pursue the Hong Kong market. The chief executive Justin Sun announced on February 10 that Hong Kong has invested in becoming the first crypto center in Asia. Sun argued that the adopted crypto-friendly regulations in Hong Kong would prompt China to remove the crypto ban.
Crypto Firms Expanding to Hong Kong
Huobi’s chief executive revealed on February 10 plans to enter the Chinese market. Despite the restrictive crypto regulation in China, pursuing the Hong Kong market might pave the way for the crypto exchange to access the Chinese market.
Sun revealed that Huobi longs to enter the Caribbean, Malaysia, and Hong Kong markets. The crypto firm invested more than $1B the previous year to buy a 60% stake in the local exchange.
Following the prolonged ripple effects from the collapse of the Bahamas, crypto exchange regulators reigning in the digital spaces are implementing stringent regulations. In Asian countries, Singapore announces plans to adopt tougher crypto regulations. On the contrary, Hong Kong has invested in developing crypto-friendly regulations to become a crypto hub.
Also read:Will China Ease the Crypto Ban?
Sun remains optimistic that adopting crypto in Hong Kong would motivate China to change virtual assets regulations.
In January, Huobi announced plans to downsize employees, which impacted massive withdrawals. The Huobi users withdrew more than $60M within 24 hrs.
At the end of 2022, the FTX scandal and crypto market meltdown hampered Huobi’s stablecoin USDD leading to a downward trend. The sudden drop in the stablecoin value challenged Sun to transfer $150M from the largest crypto exchange Binance to the Huobi platform. Sun’s strategic move is aimed at improving customer confidence.
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