The Chinese bitcoin exchange Huobi plans to return to the U.S. market after more than two years away. Co-founder Du Jun said this to CNBC.
The exchange began operating in the U.S. in 2018. In November 2019 the company transferred customer service for residents to the newly created HBUS subsidiary, but it was closed a month later.
“In 2018, we tried to enter the U.S. market, but left quickly because there was no serious readiness and a good local team,” Du explained.
According to him, given past mistakes, instead of launching a trading platform the company could focus on other areas of activity, such as asset management.
“I expect asset management to become a bigger business than the exchange. Moreover, this resonates with the traditional financial markets,” Du added.
The return to the U.S. is part of Huobi’s broader plan for global expansion after the ban on cryptocurrency trading in China. In September 2021 the exchange halted registration of new users from mainland China.
Du said that, due to the shutdown of operations in China, Huobi lost around 30% of its revenue. This served as a spur for the company’s international expansion.
At the end of 2021 Huobi selected Singapore as the location for its headquarters. In addition to the return to the U.S., the exchange is considering opening offices in Europe.
In 2021, Huobi’s subsidiary obtained a license from the Gibraltar regulator to launch spot trading.