Cryptocurrencies – FinanceBrokerage
Huobi Technology Holdings Ltd. made an official announcement. The announcement secured approval from the Hong Kong Securities and Futures Commission (SFC) to launch a cryptocurrency asset management portfolio. As a reminder: Huobi Technology Holdings Ltd. is part of one of the largest cryptocurrency exchanges in China. Huobi is ready to expand its business.
People should keep in mind that Huobi received the “Type 4” and “Type 9” licenses from SFC as early as July 2020. As a reminder, in Hong Kong, a Type 4 license allows a company to act as a securities investment advisor, while a Type 9 license covers wealth management.
This isn’t the end of the story as the company is now looking to launch three cryptocurrency funds. However, the launch is subject to the Fund complying with the additional provisions of the SFC.
Cryptocurrency in Asia
Interestingly, Huobi’s entry into the crypto asset management industry could encourage institutional investors in Asia to consider crypto investments.
What is important is that this cryptocurrency exchange ranks second after Binance in terms of real spot trading volume.
People should also keep in mind that Huobi’s Crypto Asset Management license came from the Securities and Futures Commission based on reports that Hong Kong regulators are about to ban retailers. Unsurprisingly, Huobi questions the legitimacy of the move.
In fact, in 2017, China decided to ban crypto trading and the first offering of coins. Interestingly, several Chinese cryptocurrency exchanges relocated their offices, with Hong Kong and Japan being preferred destinations at the time.
There is no need to ban crypto trading. Regulators should team up with companies and analysts to make a more crypto-friendly decision. In addition, cryptocurrencies have become increasingly popular around the world. In addition, the proposed law would likely force retailers to use unregulated platforms.
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