On May 26th, the cryptocurrency exchange Huobi announced its plans to open a trading service in Hong Kong. The decision follows a set of comprehensive updates to the city’s regulatory framework pertaining to digital assets.
Huobi Plans to Open Crypto Trading Platform in Hong Kong
This Friday, Huobi announced its plans to open a new trading platform intended for Hong Kong—Huobi HK. The company also revealed it is “actively preparing” to file its application for a cryptocurrency trading license in the city.
According to the blog post, a representative of the firm stated that Huobi is seeking to actively work with Hong Kong’s regulatory is hoping to become a key contributor to the city’s development as a digital asset and web3 hub.
The same representative also stated that the recent regulatory developments in Hong Kong will help boost crypto adoption both in the region and globally. In general, Huobi quoted said developments as a major reason behind their decision to set up Huobi HK.
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Hong Kong’s New Crypto Regulatory Framework
While the rest of China has been decisively hostile toward cryptocurrencies outright banning them in 2021, Hong Kong has continuously been more receptive. In late 2022, the city announced its plans to enable retail traders to access digital assets.
Finally, in late May 2023, Hong Kong’s Securities and Futures Commission (SFC) concluded its consultation that was initially published at the very beginning of the year. As many had hoped, the new rules will allow retail investors to access cryptocurrencies.
The rules, set to come into effect in June, will also start issuing licenses to cryptocurrency exchanges. The companies will, according to the SFC decision, also have to “comply with a range of robust investor protection measures covering onboarding, governance, disclosure and token due diligence and admission, before providing trading services to retail investors.”
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About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.