On February 20, crypto change Huobi revealed its plans to shift Asia’s headquarters from Singapore to Hong Kong. This transfer comes after Hong Kong’s Securities and Future Buying and selling Fee (SFC) proposed a brand new licensing regime permitting crypto exchanges to serve retail traders with large-cap cash.
The current FTX downfall final November worsened the crypto market scenario main many crypto firms to close down their platforms. And because the FTX saga was the second collapse after the TerraLuna fiasco in Might 2022, it alerted world regulators, implying stricter crypto rules to stop a repeat.
In the meantime, Hong Kong’s regulators took a step ahead to make the nation a crypto hub by introducing crypto-friendly insurance policies. That’s why crypto firms are lined as much as win approval from SFC to capitalize on the constructive regulatory transfer of the regime.
Justin Solar, founding father of the Tron (TRX) cryptocurrency and advisor on the Huobi change, added in an announcement:
These three years, Hong Kong’s regulatory framework has seen a variety of change for the higher, so I’m very assured in the way forward for crypto compliance in Asia, Hong Kong and hopefully China,
Huobi To Set up A New Platform In Hong Kong
Huobi additionally plans to ascertain a brand new crypto change within the metropolis to be named Houbi Hong Kong. The platform’s major objective might be to scale up its buying and selling companies for institutional traders and high-net-worth people. Justin Solar is assured about getting approval within the Chinese language particular administrative area, as Huobi utilized for the license final 12 months too. Nevertheless it failed to satisfy the stricter rules necessities of that point, and solely two corporations managed to get approvals.
Whereas talking at an interview with Nikkei Asia, Solar highlighted that Huobi may enhance its worker depend from 50 to 200 for its Hong Kong-based subsidiary. He cited newly proposed crypto-friendly insurance policies as the one motive behind this transfer.
Notably, Huobi introduced a 20% workforce reduce in January as a part of the corporate’s efforts to regulate the platform’s infrastructure according to the present market scenario. Primarily, the corporate decreased its worker depend after Justin Solar took management of the platform in October.
Whereas pointing to the “current turmoil”, Julia Leung, CEO at SFC, highlighted the downfall of large gamers like FTX. She pressed the necessity for transparency within the crypto ecosystem and investor safety as the highest precedence.
In mild of the current turmoil and the collapse of some main crypto buying and selling platforms all over the world, there may be clear consensus amongst regulators globally for regulation within the digital asset area to make sure traders are adequately protected and key dangers are successfully managed.
Featured picture from Pixabay and chart from TradingView.com