Bitcoin

Huobi Receives Hong Kong Crypto Asset Management License

Huobi, one of the largest cryptocurrency exchange platforms in China, Following the latest regulatory approval in Hong Kong, the company appears to be looking to expand its business further.

According to an official announcement from Huobi Technology Holdings Ltd., the company’s asset management subsidiary, has received approval from the Hong Kong Securities and Futures Commission to launch a cryptocurrency asset management portfolio.

The news comes after Huobi received the “Type 4” and “Type 9” licenses from the SFC in July 2020. A Type 4 license allows a company to act as a securities investment advisor, while a Type 9 license covers wealth management.

Huobi Receives Hong Kong Crypto Asset Management License
Huobi Receives Hong Kong Crypto Asset Management License

According to reports in Chinese media, the company now intends to launch three crypto asset funds, known as Huobi Asset Management, after approval by the SFC. However, the launch depends on whether the fund complies with the additional provisions of the SFC.

In a tweet on Thursday Beijing-based reporter Colin Wu commented Huobi’s entry into the crypto asset management industry could encourage institutional investors in Asia to consider crypto investments.

Wu also stated that Huobi’s planned crypto asset management fund will include both Bitcoin (BTC) and Ether (ETH).

According to crypto research firm Messari, In terms of actual spot trading volume, Huobi ranks second after Binance.

The SFC’s Huobi crypto asset management license is based on reports that Hong Kong regulators are on the verge of banning cryptocurrency retailing. Actually, Huobi is part of a group of global crypto exchanges that are questioning the legitimacy of the move.

After China’s ban on cryptocurrency trading and its first coin offering in 2017, several Chinese exchanges relocated their offices, with Hong Kong and Japan being the most popular destinations at the time.

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