Huobi saw its native token value surge on news that it had applied for a crypto trading license in Hong Kong.
Huobi token (HT) has experienced an 18% surge following Huobi’s application for a crypto trading license in Hong Kong. The HT token traded at $6.1 as of press time, the first time since last October following Justin Sun’s appointment as a general advisor.
Earlier today, Sun took to Twitter to make the high-profile Hong Kong application announcement which read:
“Big news for crypto today: @HuobiGlobal has announced that it’s applying for a crypto trading license in Hong Kong! This is a major step for the major cryptocurrency exchange and a sign of its continued commitment to operating in a compliant and regulated manner.”
In addition to the Hong Kong license, Sun also revealed that Huobi plans to launch an exchange in Hong Kong. As he put it:
“In addition to the licensing news, Huobi is also launching a new exchange in Hong Kong, aptly named Huobi Hong Kong. The exchange will be fully compliant with local regulations and offer a range of trading pairs and services to customers.”
According to Sun, the new exchange would prioritize trading services for high-net-worth individuals and institutional investors in Hong Kong. Furthermore, the TRON founder and crypto entrepreneur also explained that the Hong Kong exchange gives Huobi increased investor visibility. Sun explained that this development positions Huobi as a “trusted and secure” platform for larger Asian investors to invest in crypto.
Furthermore, Sun added that the coveted Hong Kong exchange and licensing would allow Huobi to expand its services and offerings to customers. By providing a wider range of crypto trading and investment options, investors can buy and sell crypto seamlessly.
The Huobi exchange in Hong Kong would target the Chinese special administrative region’s high-net-worth individuals.
Huobi to Enjoy Crypto Retail Trading in Hong Kong
Sun’s Twitter announcement came amid breaking news regarding the permitted trade of digital currencies in Hong Kong. According to a Bloomberg article, the Chinese special administrative region plans to allow its retail sector to trade crypto. This development forms part of Hong Kong’s greater plans to become a global crypto hub as Bitcoin (BTC) becomes more mainstream.
Under Hong Kong’s crypto-focused goals, individual investors would trade larger coins on licensed exchanges. Reports state that this licensing would be provided by the Securities and Futures Commission (SFC). In a consultation paper released Monday, the independent statutory Hong Kong securities and futures markets regulator delineated safeguards. These safeguards include ensuring risk profiles, reasonable limits on investor exposure, and knowledge tests fall in place.
The SFC did not specify which large-capitalization tokens it would permit for retail investor trading. However, the agency suggested the inclusion of coins in no less than two acceptable, investible indexes from independent providers. In addition, the SFC said that one of the prescribed indexes should have experience within the traditional financial sector.
The SFC also said the consultation period ends on March 31st, intending to permit new crypto retail trading on June 1st.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.