Huobi saw the value of its native token rise on the news that it had applied for a cryptocurrency trading license in Hong Kong.
Huobi’s token (HT) has surged 18% following Huobi’s application for a Hong Kong cryptocurrency trading license. The HT token was trading at $6.1 at press time, the first time since last October following Justin Sun’s appointment as general counsel.
Earlier today, Sun took to Twitter to make the high-profile announcement of the Hong Kong app. What read:
“Big news for cryptocurrency today: @HuobiGlobal has announced that it is applying for a cryptocurrency trading license in Hong Kong! This is an important step for the leading cryptocurrency exchange and a sign of its continued commitment to operate in a regulated and compliant manner.”
In addition to the Hong Kong license, Sun also revealed that Huobi plans to launch an exchange in Hong Kong. As he put it:
“In addition to the licensing news, Huobi is also launching a new exchange in Hong Kong, aptly named Huobi Hong Kong. The exchange will be fully compliant with local regulations and will offer a range of trading pairs and services to clients.”
According to Sun, the new exchange would prioritize trading services for high net worth individuals and institutional investors in Hong Kong. Furthermore, the TRON founder and crypto entrepreneur also explained that the Hong Kong exchange gives Huobi greater investor visibility. Sun explained that this development positions Huobi as a “trustworthy and secure” platform for larger Asian investors to invest in cryptocurrencies.
Furthermore, Sun added that the coveted Hong Kong exchange and license would allow Huobi to expand its services and offerings to customers. By providing a wider range of cryptocurrency trading and investment options, investors can seamlessly buy and sell cryptocurrencies.
The Huobi exchange in Hong Kong would target high net worth individuals from the Chinese special administrative region.
Huobi to Enjoy Cryptocurrency Retail in Hong Kong
Sun’s Twitter announcement came amid the breakup news on the permitted trading of digital currencies in Hong Kong. According to a Bloomberg article, the Chinese special administrative region plans to allow its retail sector to trade cryptocurrencies. This development is part of Hong Kong’s grand plans to become a global crypto hub as Bitcoin (BTC) becomes more common.
Under Hong Kong’s cryptocurrency-focused goals, individual investors would trade larger coins on authorized exchanges. Reports indicate that this license would be provided by the Securities and Futures Commission (SFC). In a consultation paper published on Monday, Hong Kong’s independent regulator of securities and futures markets outlined the safeguards. These safeguards include ensuring that risk profiles, reasonable investor exposure limits, and knowledge tests are met.
The SFC did not specify which large-cap tokens it would allow for retail investor trading. However, the agency suggested the inclusion of coins in no less than two acceptable investment indices from independent providers. In addition, the SFC said that one of the prescribed ratios should have experience within the traditional financial sector.
The SFC also said that the consultation period ends on March 31, with the intention of allowing retail trading of new cryptocurrencies on June 1.
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Tolu is a Lagos-based blockchain and cryptocurrency enthusiast. He likes to demystify the crypto stories down to the basics so that anyone anywhere can understand them without too much prior knowledge. When he’s not up to his neck in crypto-stories, Tolu likes music, loves to sing, and is an avid movie buff.
