Huobi Global wants to gain access to the Hong Kong cryptocurrency market. This is the reason why the exchange is eager to acquire an operational license from the respective regulatory authorities in the particular region.
Huobi Global Wants to Enter Hong Kong
The reason why the exchange is aiming to enter the particular market is that Hong Kong is making several amendments to its licensing and regulatory policies.
As a result of the policy and the licensing procedure change, the situation is becoming favorable for the crypto industry in Hong Kong.
This is the reason why Huobi Global is entering Hong Kong it wants to expand its business in a particular region.
With the recent changes, the cryptocurrency environment seems to have become very favorable for the cryptocurrency industry.
New Framework in Hong Kong
As part of the new procedure, cryptocurrency exchanges and other firms will need to be licensed in the region. They will need to get themselves registered in Hong Kong by the respective regulators before they can operate.
According to the new amendments, it will be mandatory for any crypto exchange to acquire an operational license from the securities regulator in Hong Kong.
The particular regulatory authority to allow operational licenses in Hong Kong is the Securities and Futures Commission (SFC) of Hong Kong.
Exchange to Operate in Hong Kong Cities
Once Huobi Global has acquired the license, it will start operating in Hong Kong and bring in investors from every corner of the jurisdiction.
The exchange plans on launching a fresh exchange entity in Hong Kong once it has regulatory approval. As communicated by the executives, they will be launching a new exchange “Huobi Hong Kong”.
For now, the executives are focused on targeting corporate and institutional investors. Their goal is to bring in investors who have a high net worth.
These individuals will be making huge investments in cryptocurrencies and that is where huge revenues would come in. Justin Sun, the CEO of Huobi Global has been sharing updates about the expansion of their exchange on Twitter.
New Policies to be Implemented in June
The SFC that has been on top of the entire policy and implementation process. The regulator has stated that it is working hard to introduce the new amendments at the beginning of June 2023.
Therefore, the exchange is trying its best to acquire the authorization of operating in the city before that. Once the new system is in place, it may take another six months for the process to get streamlined.
Until then, the exchange will try to do whatever it can to gain access to the Hong Kong market.
