Huobi found a new home in Malaysia as it continues to increase its influence on pan-Asian cryptocurrency adoption.
Huobi’s newest entity is called Huobi Labuan, which shares its name with a small island off of Malaysia’s North coast of Borneo.
The Labuan name is fitting for a cryptocurrency exchange given that it is derived from the Malay word labuhan which means harbor. A Bitcoin harbor might be the best place for holders of Malaysia’s Ringgit currency, which has been trading 15-20% down to the US dollar over most of the last five years.
Need for a Labuan
Currency volatility came as a result of a number of protests in 2015. These protests erupted after the discovery of a series of anonymous payments, amounting to $700 million, that were made to then Prime Minister Najib Razak’s bank account. Mr. Razak has recently been sentenced to 12 years of jail for corruption relating to the case.
The launch of the Huobi Labuan exchange will provide local cryptocurrency users with a safe and regulated way to trade cryptocurrencies. The new exchange’s website currently provides OTC trading for Bitcoin (BTC), Tether (USDT), Ether (ETH), Huobi Token (HT), Ripple (XRP), Litecoin (LTC) and EOS. The exchange will be permitted to list more assets once its trial operation ends.
Huobi’s origin story
Huobi is a Singapore-based cryptocurrency exchange. Founded in China in 2013, the company now has offices in Hong Kong, South Korea, Japan and the United States. Huobi is also a publicly listed company on the Hong Kong stock exchange, listed in 2018. Huobi’s mission is to further blockchain technology and the integration of blockchain into other industries. Huobi has expanded into public chain, digital assets trading and wallet, mining pool, proprietary investment, incubation and digital asset research.
Of course cryptocurrency regulation might not provide the safest harbor as evidenced in 2017 when the Chinese government banned exchanges and Huobi complied by disallowing withdrawals from its exchange. The same ban saw the world’s largest cryptocurrency exchange, Binance, leave China.
Huobi was in our sights earlier this year due to the further minting of its HUSD, which seems to have brought the stablecoin back to life. Huobi minted more HUSD on three different occasions in February and once again in April. Huobi also maintains the Huobi Token (HT) which operates similar to Binance’s BNB token, in providing the users of its exchange discounted rates and voting rights.