Huobi applies for licence to operate crypto exchange in Hong Kong

On May 29, the Huobi cryptocurrency exchange submitted an application to the Securities and Futures Commission of Hong Kong for a licence to organise spot trading of digital assets for retail and institutional investors.

#Huobi HK has now begun offering spot and custody services to professional and retail clients. As a pioneer in Hong Kong’s virtual asset trading platform, Huobi HK has formally submitted an application notice to the Hong Kong SFC on May 29, 2023, and we look forward to obtaining a virtual asset exchange licence.

In the next six months, Huobi HK… pic.twitter.com/qkYSqKbLBH

— 火币Huobi中文频道 (@HuobiGlobalzh) May 29, 2023

Under the proposed SFC rules, from June 1 cryptocurrency trading platform operators must hold a licence. Those that fail to comply with this requirement will wind down their activities.

Huobi HK will engage auditors and focus on regulatory compliance and anti-money-laundering efforts.

Initially, the platform’s listings will include Bitcoin, Ethereum and ‘other major coins’.

“Huobi will continue to cooperate with Hong Kong regulators to support the development of a dynamic Web3 hub,” the company said.

Earlier, OKX and BitMEX announced plans to operate in the Special Administrative Region of China.

In January 2023, Hong Kong’s Financial Secretary Paul Chan said that the jurisdiction was ready to welcome cryptocurrency firms from around the world.

In May, the head of the HKMA Eddie Yue noted that authorities will apply a tough but sensible approach to regulation of cryptocurrencies.

Earlier, Malaysia’s regulator said that Huobi did not have permission to operate in the country.