Crypto exchange, Huobi, which recently had to deny rumors of massive layoffs within the company, announced plans to relocate its headquarters to one of the Caribbean jurisdictions, with Dominica being the first candidate.
Financial Times revealed the company’s intention “to go all in in the Caribbean” in a report, citing one of the board members. The region’s “super-friendly” crypto stance, common law systems, and English language adoption are the reasons for this.
Huobi representatives also met with Dominica’s Prime Minister Roosevelt Skerrit last year, and the company plans to work with the government to improve the country’s crypto infrastructure.
Huobi’s headquarters are currently located on the Seychelles Islands in the Indian Ocean, with offices in Hong Kong, South Korea, Japan, and the United States.
According to FT, the company intends to relocate up to 200 of its 1,600 employees to the new headquarters.
The Caribbean has become a hotspot for the crypto industry, especially with the relocation of the US-founded exchange FTX from Hong Kong to the Bahamas in 2021.
Following a successful buyout, About Capital Management (HK) Co. Ltd, a Hong Kong-based asset management firm, became Huobi Global’s controlling shareholder in October.
Later that month, Chinese crypto blogger Colin Wu reported, citing “people familiar” with Huobi, that in the aftermath of the takeover, two top executives resigned from the company, and it was planning to reduce its 1,600-employee staff.
Huobi’s spokesperson denied the rumors of mass layoffs, saying the company “enjoys a healthy cash flow.” However, he admitted that, due to the crypto market downturn, some cost-cutting may still be in the works, though he did not elaborate.