Crypto exchange Huobi is moving forward with its Hong Kong expansion plans.
The latest announcement by Huobi Global noted that the firm’s Hong Kong subsidiary now offers crypto spot trading and virtual assets custodian services.
The announcement also noted that Huobi HK officially submitted a license application to the Hong Kong Securities Regulatory Commission and is confident of receiving the virtual assets license soon.
Huobi To Become the Leading Virtual Asset Platform In Hong Kong
Houbi HK plans to become the pioneer virtual assets platform in Hong Kong and has already strategized to achieve the feat.
According to the announcement, Huobi HK will work with independent auditors over the next six months to examine its financial statement and analyze business operations and processes for greater efficiency.
Also, within that period, the firm will focus on security, anti-money laundering, and compliance to meet the requirements of Hong Kong virtual assets regulators.
Robust security will bolster customer confidence and ensure the firm’s operations run effectively and smoothly.
Hong Kong Implements Crypto-friendly Policies Encourages More Expansion
Hong Kong wants to implement cryptocurrency-friendly regulations and policies as part of its plans to become a virtual asset hub.
In a recent announcement, Hong Kong Securities and Futures Commission (SFC) said it concluded consultations on regulations for trading platform operators.
The regulator launched the consultation process in February 2023.
SFC is looking to implement the proposed guidelines for crypto exchange regulation on June 1, 2023.
If implemented, retail investors can trade digital currencies on licensed platforms in the second half of 2023.
According to the regulator, 152 respondents, including firms, individuals, and market participants, made submissions during the consultation.
Many respondents nodded at the SFC’s proposal to allow retail traders to become licensed crypto operators. But some respondents raised concerns over the cost of obtaining and maintaining licenses.
Others are concerned about the potential profitability of running a business in Hong Kong since the market size is relatively small, given the size of the state.
Although the new guidelines implementation is only a few days away, the turn-up of crypto firms for registration is still poor.
The SFC noted that most of the existing crypto exchanges are not under its oversight.
The regulator emphasized the need for crypto exchanges to comply with the new guidelines or cease operations in Hong Kong.
But despite these challenges, top crypto exchanges like Huobi, OKX, and Bybit have moved with their Hong Kong plans.
Huobi’s latest announcement suggests the platform has already applied for a license.
