Earlier today, the Huobi Group cryptocurrency exchange announced that it would be shifting its spot trading operation from Seychelles to Gibraltar. According to a Bloomberg report, the organization has been given permission by the Gibraltar Financial Services Commission (GFSC) to transfer its operations to a related firm, Huobi Gibraltar.
Huobi is a major cryptocurrency exchange based in China that was founded in 2013. following China’s current crackdown on cryptocurrency in September, the group has redoubled its efforts to comply and expand globally as it reduces its involvement with cryptocurrencies in China. The firm currently runs its spot trading business from Seychelles through a registered but unlicensed entity.
Implications of the crypto exchange move
This move is a major step for the Huobi spot trading business and its clients. It will enable the group to offer spot trading services through Huobi Gibraltar which has received a DLT license from GFSC. This is a fully authorized Distributed Ledger Technology (DLT) service provider in Gibraltar.
Huobi Gibraltar originally operated as a digital asset brokerage business that catered to institutional investors and high-net-worth individuals, with over-the-counter retail services being its primary focus.
Many of these customers need to adhere to specific legal standards. They will also attract retail clients that are interested in spot trading and willing to trade in accordance with their rules and regulations. As a result, this movement will appeal to Huobi Group’s institutional clients.
Huobi Group co-founder Du Jun said the move is a significant step in their global growth strategy. The company is well aware that the cryptocurrency market is developing, therefore they are attempting to align their business with the trend. Gibraltar meets the group’s criteria since it is sophisticated, highly experienced, and a globally recognized financial services center.
In 2018, Gibraltar was among the first countries to establish a regulatory framework for cryptocurrency providers that store or transmit value using blockchain. It has taken a progressive attitude toward cryptocurrencies.