Huobi cryptocurrency exchange plans to expand to Hong Kong with regulatory changes

As the Chinese special administrative region considers new licensing and regulatory initiatives that would enable it to serve retail customers, cryptocurrency exchange Huobi Global is applying for a license in Hong Kong.

The exchange would be able to offer more services to the city under the new framework, which requires crypto exchanges to register with the Hong Kong Securities and Futures Commission (SFC). According to a Twitter thread by Justin Sun, Huobi also intends to launch a new exchange called Huobi Hong Kong that will target institutional investors and high-net-worth individuals.

The new Hong Kong licensing proposals were recently made available for public comment by the SFC, and the new system will take effect in June. In December, financial service providers lined up to join the new, expanded system after hearing about the anticipated changes.

In an interview with Nikkei Asia, Sun stated that Huobi may expand its Hong Kong workforce from 50 to 200 this year. He stated that the expansion was motivated by Hong Kong’s more accommodating crypto policy and the possibility of retail sales.

In January, Huobi stated that the layoffs were part of the company’s restructuring following Sun’s takeover in October. Due to “strategic and product adjustments,” the exchange announced in February that it would shut down its Huobi Cloud Wallet in May.

Nikkei Asia reports that Huobi is also considering moving its Singapore headquarters to Hong Kong.

Huobi is also expanding its services to other areas. In January, it said that it would launch a Visa-backed crypto-to-fiat debit card that Huobi customers in the European Economic Area could use anywhere. The second quarter of this year is anticipated to see the availability of that card.