HuobiGlobal Secures Exchange License, Launches Crypto Spot Trading in Hong Kong

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Huobi HK, the Hong Kong branch of the international trading platform, has taken a significant step forward by launching spot trading and virtual asset custodian services in Hong Kong.

The expansion allows users to engage in spot trading activities and securely store their virtual assets under Huobi’s custodianship. A move that showcases Huobi’s commitment to meeting the growing demand for crypto services in the Hong Kong market.

Huobi HK Gets License for Virtual Asset Exchange License in Hong Kong

On May 29, Huobi HK officially received the license to be a virtual asset exchange from the Hong Kong Securities Regulatory Commission, pending the submission of an earlier application. The exchange plans to collaborate with independent auditors and enhance its security procedures within six months. Improvements will be made to anti-money laundering measures and compliance practices to ensure compliance with local regulations.

Exciting news! ??#Huobi HK now offers spot trading & virtual assets custodian services in #HongKong.

We are applying for a VATP license & working on security, compliance, & anti-money laundering measures with independent auditors.

Stay tuned for more soon! ??? pic.twitter.com/Z6rFBsRFCZ

— Huobi (@HuobiGlobal) May 29, 2023

Hong Kong will introduce a new licensing system for companies providing virtual asset services starting June 1. This shows that Hong Kong is open to cryptocurrency businesses and also allows regular investors to trade popular cryptocurrencies while adhering to specific local laws.

In addition, the Hong Kong Monetary Authority chief, Eddie Yue, says that cryptocurrency businesses are welcome in Hong Kong. However, he clarified they should not expect lenient regulations.

“Our regulation will be tight”

Hong Kong Monetary Authority Chief Executive Eddie Yue explains what crypto companies should expect under a new licensing regime https://t.co/C6nWnRKtsU pic.twitter.com/hgpJr2mkjY

— Bloomberg TV (@BloombergTV) May 9, 2023

Huobi HK is now introducing spot trading and virtual asset custodian services. The company is actively pursuing a Virtual Asset Trading Platform (VATP) license and is diligently working on enhancing security, compliance, and anti-money laundering measures in collaboration with independent auditors.

Getting a virtual asset provider license in Hong Kong is a challenging task. Each token listed on an exchange will undergo scrutiny, and market-making activities will not be permitted. Huobi HK is also preparing to expand its cryptocurrency offerings following regulatory action against its global parent company in Malaysia. The Securities Commission Malaysia made an announcement stating that Huobi was doing business without a Recognised Market Operator license.

The license is necessary to show that it complies with regional laws and protects investors. This led to Huobi Malaysia being prohibited from advertising in Malaysia. As a result, they had to block user access to the exchange’s apps on digital platforms.

Huobi’s Bold Expansion: Moving Headquarters, Securing Market Share, and Amplifying Staff Growth

According to a February article by Nikkei Asia, Justin Sun, the CEO of TRON, has been planning to move Huobi’s Asia headquarters from Singapore to Hong Kong. Sun’s plans to expand Huobi’s operations in Hong Kong come as the region seeks to establish itself as a prominent player in the cryptocurrency industry.

Additionally, Huobi expressed its intention to increase its staff headcount from 50 to 200 by the end of the year. According to a recent BeInCrypto report, Huobi is successfully gaining market share by attracting business from leading exchanges like Binance. Huobi has also captured 8% of the volume that Binance lost to Asian players.

Coin Ranking data shows that Huobi Global currently holds the twelfth position in trading volume, with a daily trading volume of approximately $400 million at the time of publication.