The Huobi US expansion is getting closer after receiving a FinCEN license today, so let’s take a closer look at the Huobi news of the day. Users in the US can anticipate the arrival of a digital asset service in the near future.
The US Financial crimes enforcement network granted a money services business license to HBIT, a subsidiary of the Huobi exchange. The Huobi US Expansion appears to be headed in the right direction, and the exchange claimed that the recently obtained license lays the groundwork for it to conduct cryptocurrency business in the US and will, in the future, advance efforts toward globalization and compliance. According to data from CoinGecko, the exchange is a major player with $1 billion in volume over the last day.
Prior to the Chinese government’s crypto crackdown, China accounted for the majority of Huobi users, but according to Statista data, users in February of this year primarily came from Russia and Ukraine. It is a requirement by US regulators that the MSB license be obtained by the Huobu subsidiaries in order for FinCEN to be capable of detecting minor financial crimes like money laundering. It states that in the future it expects users in the US with a complaint digital asset service and that it is not permitted to offer cryptocurrency exchange services that call for a money transmitter license.
The Securities and Futures Commission of Hong Kong issued asset management and securities advisory licenses to the subsidiaries there, according to Huobi. In order to operate as compliant cryptocurrency exchanges in Hong Kong, the subsidiaries are currently applying for a license to offer automated trading services. Even New Zealand and the UAE granted licenses to the exchange, though the latter was an Innovation License that gave users access to the nation’s tech sector and favorable tax treatment. Lily Zhang, the chief financial officer of Huobi Global, stated at the time that there were plans to obtain the license and make the entire site available under the Dubai Virtual Assets Regulatory Authority.
Not all of the news has been positive, as the exchange reportedly broke local laws and had its Thai license revoked. There were also rumors of significant staff reductions and that the foundation might want to leave the industry. According to Hong Kong-based reporter Colin Wu, the exchange intends to fire up to 30% of its employees. However, other reports indicate that founder Li Lin wants to sell 50% of his stock.
DC Forecasts strives for the highest journalistic standards and abides by a rigid set of editorial policies, making it a leader in many crypto news categories. Please feel free to contact us at [email protected] if you are interested in contributing to our news website or offering your expertise.
