World-Famous Cryptocurrency, Its Subsidiary, and Hong Kong
Huobi Technology Holdings Ltd. made an official announcement. The announcement secured approval from the Hong Kong Securities and Futures Commission (SFC) to launch a cryptocurrency asset management portfolio. Huobi Technology Holdings Ltd. is part of one of the largest cryptocurrency exchanges in China, as a reminder. Huobi is willing to expand its business activities.
People should keep in mind that, Huobi secured “Type 4” and “Type 9” licenses from SFC back in July 2020. As a reminder, in Hong Kong, a Type 4 license enables a company to act as a securities investment adviser while a Type 9 license covers asset management.
This is not the end of the story, as the firm is now looking to launch three cryptocurrency asset funds. Nevertheless, the launch will be contingent on the fund complying with additional provisions issued by the SFC.
Cryptocurrency in Asia
Interestingly, Huobi’s entry into the crypto asset management arena may incentivize institutional investors in Asia to consider crypto investments.
Importantly, this cryptocurrency exchange is second only to Binance in terms of real spot trading volume.
People should also consider that Huobi’s crypto asset management license from the Securities and Futures Commission comes amid reports that Hong Kong regulators are close to banning retail trading. It is not surprising that Huobi is challenging the legitimacy of the move.
In fact, in 2017, China decided to ban crypto trading and initial coin offerings. Interestingly, several Chinese cryptocurrency exchanges moved their offices elsewhere, with Hong Kong and Japan being favored destinations at the time.
There is no need to ban crypto trading. Regulators should join forces with companies as well as analysts to find a more crypto-friendly decision. Moreover, cryptocurrencies gained popularity all over the world. Furthermore, the proposed law would likely push retail traders to embrace unregulated platforms.
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