Huobi Global, the cryptocurrency exchange, is applying for a Hong Kong licence. This is at a time that the Chinese special administration region is looking into possible licensing and regulatory changes to allow it work with retail clients.
The new regulatory framework provides that Cryptocurrency exchanges You must register with the Securities and Futures Commission in Hong Kong. This will allow the exchange’s service offerings to be expanded to include the city. Justin Sun posted a thread on Twitter stating that Huobi plans to launch a new Hong Kong exchange called Huobi Hong Kong. This exchange will target institutions and high-net worth individuals.
The Securities and Futures Commission (SFC), has just made the new Hong Kong licensing proposal available for public comment. The new regulations are expected to go into effect in June. Once financial service suppliers learned about the changes, they started to prepare for the upgrade in December.
Sun stated that Huobi might increase the number of employees in its Hong Kong office by 50 to 200 this fiscal year during a Nikkei Asia interview. Sun explained that this was due to Hong Kong’s favorable position in cryptocurrency and the possibility of retail sales.
Huobi announced in January that they would be cutting 20% of their workforce as part of a reorganization of the firm following Sun’s October acquisition. According to Huobi, the cryptocurrency exchange stated in February that “strategic modifications and product modifications” would cause its Huobi Cloud Wallet to be discontinued in May.
According to Nikkei Asian, Huobi may be considering moving its headquarters from Singapore into Hong Kong.
Huobi is also looking to expand its services in other areas. The company announced in January that it will create a crypto-to fiat debit card, which will be supported by Visa. This card will be available to customers of Huobi who are residents in the European Economic Area. This card will be available for purchase in the second quarter.