Crypto exchange Huobi is moving forward with its Hong Kong expansion plans.
The latest announcement from Huobi Global states that the firm’s Hong Kong subsidiary now offers crypto spot trading and virtual asset custodian services.
The announcement also mentioned that Huobi HK has officially submitted a license application to the Hong Kong Securities Regulatory Commission and is confident of receiving the virtual asset license soon.
Huobi to become the leading virtual asset platform in Hong Kong
Houbi HK plans to become the leading virtual asset platform in Hong Kong and has already put in place strategies to achieve the feat.
Per the announcement, Huobi HK will work with independent auditors over the next six months to examine its financial statements and analyze business operations and processes for greater efficiency.
Furthermore, during that period, the firm will focus on security, anti-money laundering and compliance to meet the requirements of Hong Kong virtual asset regulators.
Strong security will enhance the confidence of the customers and ensure the firm’s operations to run effectively and smoothly.
Hong Kong Enacts Crypto-Friendly Policies, Encourages More Expansion
hong kong Seeks to implement cryptocurrency-friendly regulations and policies as part of its plans to become a virtual asset hub.
recently AnnouncementThe Hong Kong Securities and Futures Commission (SFC) said it held consultations on regulations for trading platform operators.
regulator launched Counseling process in February 2023.
SFC intends to implement the proposed guidelines for crypto exchange regulation on June 1, 2023.
If implemented, retail investors could 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 presentations during the consultation.
Several 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 a licence.
Others are concerned about the potential profitability of running a business in Hong Kong as the market size is relatively small considering the size of the state.
Although the implementation of the new guidelines is just a few days away, the turnout of crypto firms for registration is still poor.
The SFC noted that most of the existing crypto exchanges are not under its supervision.
The regulator stressed the need for crypto exchanges to comply with the new guidelines or cease operations in Hong Kong.
But despite these challenges, top crypto exchanges such as Huobi, okxAnd bybit Have gone on with their Hong Kong plans.
The latest announcement from Huobi reveals that the platform has already applied for a license.