Huobi, one of the global crypto exchanges, is planning to roll out a fiat gateway for Turkey. This could give local investors access to over 250 forms of cryptocurrency.
This comes in the wake of Turkey putting forward a more specific form of the legal framework for the crypto market of the country to adhere to. Mohit Davar, Huobi’s Europe, Middle East, and Africa (EMEA) regional president, released a statement. He explained that Turkey is a country that already has a large number of cryptocurrency holders.
Davar stated that the Huobi had partnered up with one of Turkey’s most significant local banks. This was with the intent to build the compliance standards and infrastructure Huobi needed to facilitate the new fiat gateway. Strangely enough, Huobi has declined to disclose the name of their local partner.
Davar stated that the partnership would be announced with its new offering’s launch. He said that it would happen, at the latest, in December, but the actual date could be earlier as Huobi had started testing the gateway platform already.
Davar continued, saying that Huobi established a partnership with this mysterious bank back in June. They have since been trying to address the biggest problems that the Turkish banks have voiced. Davar stated that a lack of precise regulation in the framework had left banks with no choice but to make their own choice about the matter. He noted that the banks want to ensure that, should they partner up with Huobi, they would fulfill their obligations.
The fiat gateway is a relatively simple concept. It will enable transactions between the fiat currency, Lira, and the Dollar-based stablecoin Tether. When the users have bought Tether through their bank account, they are then free to trade however they wish with the other cryptocurrencies on Huobi Global. Huobi itself considers the Lira USDT pairing something that enables easier transactions for the local market. The alternative would be to number-crunch ever single currency’s exchange rate compared to Lira.
Davar explained that it’s no easy feat to offer full liquidity in over 250 forms of cryptocurrency against the local one. He said that you could convert Lira to the dollar-pegged Tether at a comfortable rate, without worrying about extreme volatility common through many forms of cryptocurrency.
Davar disclosed the exchange’s fee structure, citing that Turkish users can trade at a 50% discount and a 0.1% transaction fee. The transaction fees are even lower if the users hold Huobi Tokens.
The exchange has already launched a mobile app and a Turkish version of its trading website. The next step would be to onboard its local team and start the operation. As a bonus, Davar states the partnership is non-exclusive. This allows the firm to add more banking partners as time goes on.
Huobi Burning Money
As Huobi plans on expanding to Turkey, they are also reducing their supply of the local Huobi coin. In the third quarter, they have managed to burn over $40.63 million in Huobi tokens. This is a stark 70.6% increase from last year’s burning.
Huobi buys back outstanding Huobi Tokens from the various investors, then factor it out of the system ultimately to reduce the circulation of HT and thus stabilize their currency’s price. They burn different amounts of HT per quarter, mostly dependant on the market conditions.
The Huobi Token is the second largest form of exchange coin tokens, only beaten by the Binance Coin. Huobi itself cites the reason for its token burn this quarter was its great success in derivatives trading and spot trading.