Crypto Exchange Huobi Returns to US Market Following Approval from Nevada Regulators
Huobi Global, the holding company for major crypto exchange Huobi, has been operating outside of the United States for a little over a year now. However, it appears set to return.
Earlier today, Huobi Technology Holdings published a press release confirming that it had received a Trust Company License from the Financial Institutions Division at Nevada's Department of Business and Industry.
No Confirmation Yet
As the press release explained, the license will allow its Nevada-based subsidiary, Huobi Trust, to operate. The exchange didn't reveal much about re-launching its exchange platform, although little suggests otherwise.
The company also warned investors to be careful with their dealings with supposed fraudsters, reiterating that Huobi Trust has yet to commence dealing in any trust services.
Huobi Global ceased operations in the U.S in November 2020. At the time, HBUS, the operator of its U.S based exchange, announced that the move was part of a “strategic layout,” with HBUS trying to get in line with Huobi's operational policies.
However, Huobi itself has been less succinct about why it exited America. A month before the closure, Huobi stated that it would freeze all its American users' accounts in a blog post. The firm explained that U.S.-based users had been restricted from trading on its platform, adding that the limit was due to regulatory uncertainties in the country.
Another Market Possibly Opens Up
Now that Huobi appears poised to re-enter the U.S. market, it might not meet a different regulatory landscape. While Nevada's regulators might have given the all-clear, the company still requires approval from other jurisdictions like New York before offering its services fully in the U.S.
Still, its pedigree should help in securing the necessary licenses to move forward. Huobi is ranked third on the list of global spot exchanges, behind only Binance and Coinbase Pro. The exchange has a pretty solid reputation for security, and its presence in the United States is sure to benefit the local industry.
The Nevada license is the latest in a string of expansion efforts from Huobi. Last month, the exchange announced the launch of Huobi Labuan, its Malaysian subsidiary. The exchange got a brokerage license from the country's authorities in September, and it has launched a fully regulated entity there.
Huobi also strengthened its presence in Russia back in August, announcing Vladimir Demin's promotion as its chief advisor for the region.