Following the continuous crackdown from regulators across the globe, many crypto exchanges are readjusting their mode of operations. Many brokers have had to shut down some of their operations in countries that seemed relentless in enforcing crypto limitations against operators.
One of the exchanges that are constantly making changes is Huobi Global. Houbi Global previously shut down its US services and gave its traders seven weeks to withdraw their funds. The action was to comply with the regulations/terms of service limiting US citizens from using Huobi.
Fast forward to 2021, lots of issues have been rising in the industry, forcing many exchanges, including Huobi, to take similar actions.
Related Reading | Indian Government Set To Hear Crypto Companies Next Week
For instance, in September 2021, Binance gave one month to its Singaporean users to withdraw their assets. Also, tokens, as a compliance measure to the Monetary Authority of Singapore.
Now, Huobi Global is set to move its Spot Trading service to Gibraltar, as the commission has given them the approval to do so.
Huobi started operations in China and got the license to operate from Gibraltar in 2018. Now that the Chinese government cracked down on the activities of crypto players in its territories, the crypto exchange is now moving to a new home.
Total crypto market stands at $2.784 Trillion | Source: Crypto Total Market Cap from TradingView.com
Before spot trading development, the exchange first moved many services to Singapore when the host government started the second batch of the crackdown last two months. The exchange even disclosed plans to remove Chinese users from its network.
Huobi Global Migrates Spot Trading
The available details show that these services will be migrated to an entity in Gibraltar that has the licenses to operate.
The spokesperson for the exchange revealed that the entity would handle both the users, cloud hosting, and tech infrastructure. But for other services, there is no details or statement about moving them. The only thing that the spokesperson disclosed was that some staff might also join the Gibraltar entity.
Related Reading | India’s Payment Giant Paytm May Add Bitcoin If Government Legalizes Crypto
As for their target users, the exchange aims at serving their global customers even from the new base. However, for now, Huobi aims to achieve a decentralized mode of operation without a central authority.
Also, we learned that one of its subsidiaries, Houbi Technology in Gibraltar, has a DLT license. It enables to transmit or store a value. Moreover, the company can also operate a platform to trade virtual assets.
But in all its activities, Huobi hasn’t moved its Spot Trading to an entity operating under the regulator’s watch.
So this move is targeting the interest of institutional investors who might likely have more confidence in the exchange due to the licensed entity linked to the services.
Before now, the entity operating in Gibraltar was a broker that handled individuals with high-net-worth and institutional investors. It also offers over-the-counter crypto trading services and has been operating since 2017. Now, it has added spot trading to its services.
Featured image by Pexels, Chart by TradingView.com
