Following Hong Kong’s Securities and Futures Commission (SFC) move to allow retail investors access to cryptocurrency, Huobi is looking to explore the market by opening an office in the Chinese colony. Currently, the crypto exchange offers digital asset transactions for users in mainland China and other Asian regions.
Gearing Up For Hong Kong
Huobi Global has set its sights on another ambitious move with the upcoming launch of its Hong Kong branch, scheduled for June 1. This strategic expansion seeks to cater specifically to users within the city-state, signifying a new era of cryptocurrency trading.
Notably, the Securities and Futures Commission (SFC) of Hong Kong has eased its strict cryptocurrency measures to allow retail investors to acquire and invest in digital tokens following a tumultuous year for the fledgling industry. Hence, Huobi’s latest establishment, Huobi Hong Kong, situated within the unique administrative region of China, will adhere entirely to local regulations while providing customers with an extensive array of trading pairs and services.
Upon its highly anticipated launch, users will gain access to a diverse selection of cryptocurrencies, including Bitcoin (BTC), Tron (TRX), Ether (ETH), and Huobi’s native digital asset (Huobi Token, HT). Huobi started its rebranding move last November after acquiring About Capital Buyout Fund a month earlier as part of its expansion drive.
The acquisition is part of Huobi’s plan to set up shop in the Caribbean. In addition, the cryptocurrency exchange has disclosed its plans to intensify investments in various regions, such as Southeast Asia and Europe, as part of its growth strategy.
Moreover, the company aims to grow its ecosystem through strategic mergers and acquisitions, enhancing its reach and capabilities in the market. Conversely, Huobi has had a hard time with the Malaysian regulatory body.
According to reports, the Securities Commission of Malaysia (SCM) recently revealed that the exchange’s failure to register as a digital asset service provider led to its suspension from the country.
Hong Kong’s Web3 Vision
During the Hong Kong Web3 Festival held in April, Financial Secretary Paul Chan Mo-po reaffirmed Hong Kong’s determination to solidify its position as a prominent regional cryptocurrency hub. Despite the prevailing industry-wide crackdown on crypto in Western nations, the city remains steadfast in its commitment to embracing and nurturing the crypto sector.
This resolute stance sets Hong Kong apart as it charts a unique path in the ever-evolving landscape of digital currencies. This week, the Securities and Futures Commission (SFC) of Hong Kong unveiled a report detailing the outcome of its consultation on policy recommendations.
Notably, the SFC has agreed with the proposal to grant licensed virtual asset providers (VASPs) the ability to serve retail investors. However, these operators demonstrate a comprehensive understanding of associated risks.
This decision reflects the regulator’s innovative approach to striking a balance between facilitating market access and safeguarding the interests of retail investors in the evolving landscape of virtual assets. Under the newly established framework, the guidelines governing virtual asset service providers (VASPs) will include stringent measures like asset custody security, cybersecurity regulations, and the separation of client assets from the company’s fund.
Moreover, all platforms operating within Hong Kong’s digital asset industry must apply for licenses within the prescribed timeline.
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