Huobi is taking steps to gain approval from Hong Kong regulators to operate in the city, and also establish a local subsidiary that will cater to institutional investors.
Huobi looking to service Hong Kong customers
In a tweet thread on Feb. 20, 2023, Justin Sun, advisor at Huobi and TRON founder, said that the new license will enable Huobi to offer cryptocurrency trading and investment opportunities to Hong Kong users. Sun earlier revealed Huobi’s plans to expand into the city.
Also, Huobi will create a compliant local cryptocurrency exchange called Huobi Hong Kong, which will cater to institutional investors.
The latest development comes as the Securities and Futures Commission (SFC) is seeking public opinion on a consultation paper.
While the Hong Kong regulatory watchdog has said that all centralized crypto exchange platforms operating in the city will have to be licensed by the SFC under an upcoming licensing regime, the regulator is also calling for comments on whether licensed companies should service retail investors.
Hong Kong also announced plans to legalize crypto trading in June 2023. The city continues to see an influx of companies willing to do business in Hong Kong.
Apart from Huobi, Singapore banking giant DBS is looking to apply for a regulatory license that would enable the bank to provide crypto trading services for its Hong Kong clients.