Huobi seeks Hong Kong trading license as crypto policy is expanded

After the financial authorities in Hong Kong announced a public consultation for their new plan to allow licensed cryptocurrency exchanges to serve retail investors in the country who wish to trade large cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), Huobi is reportedly applying for a crypto trading license there.

Indeed, the Singapore-based crypto trading platform Huobi announced it was seeking to obtain a cryptocurrency trading license in Hong Kong, as well as to launch a new branch there, according to a Twitter thread posted by the crypto exchange’s Global Advisory Board member and its new leader Justin Sun on February 20.

Expanding into Hong Kong

Specifying the details of this announcement, Sun said:

“With the new license, Huobi will be able to expand its services and offerings to customers in Hong Kong, providing a wider range of crypto trading and investment options.”

Furthermore, as he explained, “Huobi is also launching a new exchange in Hong Kong, aptly named Huobi Hong Kong,” which “will be fully compliant with local regulations and offer a range of trading pairs and services to customers,” focusing on “institutional investors and high net worth individuals.”

This announcement arrived as Hong Kong’s Securities and Futures Commission (SFC) called for public consultation over whether to allow licensed exchanges to provide services for retail investors, as well as what specific measures should be implemented to protect these investors.

Huobi delistings and wallet termination

Earlier in January, Huobi also made headlines over permanently delisting as many as 33 digital assets, citing violations of several conditions required to remain listed on the crypto exchange, such as 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, as the withdrawal services remain open for three months.

Meanwhile, Finbold has recently reported on the Hong Kong government issuing a tokenized $102 million (HK$800 million) green bond with a 4.05% yield, in what is the first batch of government-issued bonds of its kind in the world after earlier welcoming crypto trading, as the territory strives to establish itself as a crypto hub.