Huobi Global exits Singapore to form new local entity

Huobi Global, one of the world’s largest cryptocurrency exchanges by trading volume, is shutting down operations in Singapore shortly after leaving China.

The exchange will close the accounts of all users in Singapore by the end of March next year, the company officially announced late Tuesday.

All Singapore-based Huobi Global customers should close their active positions and withdraw their digital assets by March 31, 2022, Huobi said. The exchange will also gradually stop accessing Huobi services in Singapore by March, the notice noted.

The move is part of efforts by local financial authorities to comply with relevant regulations, the company said. According to Huobi’s user agreement, the company’s services are prohibited to people living in the United States, Canada, Japan, Cuba, Iran, Venezuela, Singapore, Crimea, Mainland China, Kyrgyzstan, United Kingdom. and others.

10, Huobi Global told Cointelegraph that the withdrawal from Singapore should be seen as a strategic move to pave the way for Huobi Singapore, a new entity that intends to act as a platform. regulated digital asset exchange in the country.

Operating under Huobi Technology Holdings Limited, Huobi Singapore is building a global digital asset exchange platform and has applied for a payment institution license under the Payment Services Act from the Money Authority. Singapore currency. Currently, Huobi Singapore is exempt from the license under the PS Act while the application is under review, Huobi Global said.

According to the statement, Huobi Singapore is expected to launch by the end of 2021 and will be accessible to both retail and corporate customers, subject to the necessary approvals.

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“We want to assure local users that Huobi Singapore is always up and running and we are excited to launch a new platform to better serve the needs of the local market. Huobi Singapore is committed to complying with local and international regulations to provide a regulated and secure trading platform for retail and corporate users,” said Huobi Singapore CEO Edward Chen. know.

Singapore has recently emerged as a major global crypto hub, with local regulators issuing multiple licenses to legalize cryptocurrency trading in the country. According to Ravi Menon, chief executive officer of the Monetary Authority of Singapore, the agency is introducing “very tight regulation” to strengthen Singapore’s position as the world’s crypto hub.

Related:Huobi Group is moving to Gibraltar after China’s crackdown

Several other global regulators have flagged Huobi’s activity recently. In September, Thailand’s Securities and Exchange Commission temporarily closed Huobi’s local subsidiary and recommended the revocation of its operating license with the Ministry of Finance.

The news comes shortly after Huobi was forced to leave China when the local government announced a major crypto ban at the end of September. As previously reported, Huobi plans to close all stores. Chinese accounts in Mainland China before December 31. Founded in China in 2013, Huobi is notable for having close ties to the country. Before the ban, their China operations accounted for at least 30% of total transaction volume and revenue.