Huobi HK applied for a virtual asset exchange license after setting up shop locally in Hong Kong.
The new division of Huobi will now allow retail and institutional customers to trade crypto spot pairs through the main exchange website.
Other trading venues hope to apply for a similar license as Hong Kong recently unveiled a crypto licensing regime to bootstrap innovation and establish protection for investors.
Crypto exchange Huobi applied for a virtual asset exchange license with Hong Kong’s Securities and Futures Commission, per a statement issued today May 29.
The application is for the exchange’s new local division dubbed Huobi HK. Following the crypto license application, Huobi HK will now allow retail and institutional customers to trade crypto spot pairs through the main exchange website.
Users in Hong Kong will access trading facilities through the company’s main website while authorities consider the VAE license. Huobi HK division will list major crypto tokens like Bitcoin (BTC) and Ether (ETH), per a May 26 announcement.
Today’s official notice added that Huobi HK will work with security experts and independent auditors to ensure compliance with local regulations.
In the next six months, Huobi HK will work with independent auditors, focusing on the security, anti-money laundering and compliance of the platform to meet the requirements of the Hong Kong Securities Regulatory Commission and ensure the operation of the platform
In other Huobi news, the exchange was instructed to cease operations by the Malaysia Securities Commission for operating an illegal business.
Hong Kong Open For Business With Licensing Regime
Huobi HK’s application for a crypto license follows a licensing regime introduced by Hong Kong authorities meant to protect investors and regulate crypto service providers.
Huobi in particular has been after a license in the area since February while other exchanges like OKX plan to apply for a crypto license.