Crypto trading platform Huobi plans to expand to Hong Kong despite recent legal developments

Recently, the crypto exchange reduced its workforce by 20%, but it will now boost its Hong Kong workforce from 50 to 200 employees.

Huobi Global is applying for a license in Hong Kong as the Chinese special administrative region contemplates new licensing and regulatory measures that would enable it to service retail clients.

The new structure, which requires crypto exchanges to register with the Securities and Futures Commission (SFC) of Hong Kong, would enable the exchange to extend its services in the city. According to a tweet by Justin Sun, Huobi also intends to launch a new exchange in Hong Kong called Huobi Hong Kong, which would focus on institutional and high-net-worth investors.

The SFC has just posted the new Hong Kong licencing proposals for public feedback; the new licencing system will take effect in June. In December, financial services firms lined up to join the new, wider system after hearing about the anticipated changes.

Sun said in an interview with Nikkei Asia that Huobi may double its Hong Kong personnel from 50 to 200 this year. According to him, the move was prompted by Hong Kong’s favourable position on cryptocurrencies and the potential for retail sales.

As part of the company’s reorganisation after Sun’s purchase in October, Huobi stated in January that 20% of its workforce will be let off. Due to “strategic and product modifications,” the exchange stated in February that it will discontinue the Huobi Cloud Wallet in May.

According to Nikkei Asia, Huobi is mulling of relocating its headquarters from Singapore to Hong Kong. Also, Huobi is spreading its services to other locations. It stated in January that it would issue a Visa-backed crypto-to-fiat debit card that Huobi clients in the European Economic Area will be able to use globally. In the second quarter of this year, this card is anticipated to be released.

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