Huobi, the Singapore-based crypto trading platform, is reportedly seeking a cryptocurrency trading license in Hong Kong as the country’s financial authorities announced a public consultation for their new plan to allow licensed crypto exchanges to serve retail investors.
This comes after Huobi’s announcement to launch a new exchange in Hong Kong named “Huobi Hong Kong” that will comply with local regulations and offer a range of trading pairs and services to customers, with a focus on institutional investors and high net worth individuals.
The move by Huobi comes as Hong Kong’s Securities and Futures Commission (SFC) calls for a public consultation to determine whether licensed exchanges should be allowed to provide services to retail investors and what measures should be implemented to protect these investors.
This move is part of a broader effort by Hong Kong’s financial authorities to regulate the use of cryptocurrencies in the country.
Huobi’s decision to seek a cryptocurrency trading license in Hong Kong is seen as a strategic move to expand its services and offerings to customers in the country.
The move is expected to provide greater regulatory certainty for Huobi, making it easier for the platform to provide services related to cryptocurrencies in the country.
In January, Huobi made headlines when it permanently delisted as many as 33 digital assets, citing violations of several conditions required to remain listed on the crypto exchange.
These conditions included failure to update quarterly and semi-monthly reports and average daily volume being below $50,000 for 15 days.
In mid-February, the platform announced it was shutting down its multi-token Huobi Cloud Wallet “due to strategic and product adjustments,” urging users to transfer their assets to Huobi accounts or other on-chain addresses as soon as possible.
