One of the largest cryptocurrency trading exchanges, Huobi, is now considering expanding its services to China. Huobi Chief Justin Sun believes this will be a massive turnaround for the firm in the hopes that China will contribute positively to its growth.
Before now, the China government placed some restrictions on cryptocurrencies. The idea was to keep its citizen safe from possible scams and risks in the crypto space. It also warned the citizens to avoid transactions with crypto, stating that they are illegal. But it appears that the narratives are about to change in Hong Kong.
Huobi Expansion In Hong Kong
Hong Kong plans to resume its interest in the crypto industry by legalizing retail crypto trading. However, according to a Bloomberg report in October 2022, the city will impose a mandatory licensing regimen from March 2023.
So, Huobi’s decision to expand its services to the region will favor the exchange and the crypto investors in Hong Kong. The regulation will lift the ban on crypto transactions allowing the exchange to operate freely and the investors to transact confidently.
According to Justin Sun, Hong Kong is suitable for crypto transactions. He revealed this information in an interview with Bloomberg TV.
Hong Kong is now planning to rekindle the interest of its crypto investors by legalizing retail trading with crypto. It announced the plans last year when the industry battled the FTX collapse and its contagion.
Based on Sun’s statement, bringing the services of the exchange into the region could bring more exposure to the industry by helping to reactivate the interests of the citizens in the region. Sun also believes that Hong Kong is not the only region where crypto dealings are profitable. As per Sun, the notable areas where cryptocurrency can thrive are the Caribbean and Malaysia.
Huobi’s Challenges Earlier This Year
Just like several other crypto exchanges, Huobi also faced some difficulties in the early period of 2023. At the time, it witnessed increased withdrawals from its users that amounted to over $60 million within 24 hours.
The occurrence led to the de-pegging of Huobi’s native digital asset. But Sun decided to intervene by committing his own money to tackle the rising issue.
He transferred about $150 million worth of stablecoins into the Huobi platform from Binance to restore and sustain the trust of the crypto exchange users.
However, the HUSD continues to trade below peg at$0.1332 at the time of this writing. Huobi’s native token, HT, is currently trending above $5.
Featured Image from Pixabay and chart from Tradingview.com