Crypto exchange Huobi is making strides towards obtaining a crypto trading license in Hong Kong, with the potential to receive approval by the end of the year, according to Huobi advisor and Tron founder Justin Sun. Sun recently shared his thoughts on CoinDesk TV, stating that the exchange submitted a virtual asset service provider (VASP) application last week, thus initiating an 18-month grace period for regulators to evaluate.
While the lengthy grace period allows ample time for regulators to make an informed decision, Sun remains optimistic that this process may conclude within the next six to twelve months. He said, “The details of the regulation will come out in the next 18 months, for example, how to comply with customer withdrawals [and] anti-money laundering requirements.”
During this grace period, Huobi, which recently moved its headquarters from Singapore to Hong Kong, can continue to operate within the city, serve customers, and establish banking relationships. This strategic relocation positions the company closer to realizing its goal of launching Huobi Hong Kong, particularly as the city is striving to become a virtual asset hub as soon as this summer.
It remains uncertain whether other Asia-based crypto exchanges have applied for similar licenses, but Sun anticipates that several major players, including OKX, Gate.io, Bitget, and ByBit, might follow suit. On the other hand, Sun dismissed the notion of Huobi competing with Coinbase and Kraken in Canada, citing the country’s stringent regulatory requirements as a deterrent.
Instead, Huobi appears to be focusing its efforts on pursuing opportunities within “friendly jurisdictions,” such as the Caribbean, Hong Kong, and Japan. The expansion into these regions would enable the company to establish a stronger presence in the global market and benefit from more lenient regulations.
While this development seems promising for Huobi, it is essential to consider the potential challenges stemming from increased regulatory scrutiny. Whether or not the company can successfully navigate these obstacles and capitalize on the growing demand for digital assets will greatly impact its long-term success in the crypto sphere.
Source: Coindesk
