Huobi’s spot-trading will be domiciled in Gibraltar following approval from Gibraltar Financial Services Commission.
Huobi Group will offer spot-trading services in Gibraltar through Huobi Technology (Gibraltar) Co. Ltd., a centralized digital asset exchange licensed and regulated by the Gibraltar Financial Services Commission. Prior to this, spot trading was taking place in the Seychelles. Before this, Huobi Technology Gibraltar was licensed by the GFSC in 2018 for institutional brokerage and over-the-counter services. A distributed ledger technology (DLT) legal framework was published in October 2017 and ratified in January 2018, under which Huobi operates.
The DLT license enables the use of DLT to store and transmit value to others while executing activities approved by the GFSC. This migration will undoubtedly be music to the ears of institutional investors, who require the meeting of rigid compliance requirements. Bitso, eToro, and INX are some of the companies that took advantage of the new legislation.
Huobi is moving some of its infrastructure and cloud hosting to Gibraltar. Founders unanimously backed the decision to move out of China on Sept. 24, before Chinese regulators announced the blanket ban on cryptocurrency activity later that day.
Gibraltar’s crypto foresight
BeInCrypto recently reported that Gibraltar had been one of the most forward-thinking governments concerning cryptocurrency and blockchain technology. A working group was established in 2014 to investigate cryptocurrencies after bitcoin’s first bull run. Albert Isola, Minister for Digital and Financial Services, outlined the plan, which involved a core set of nine principles, within which some flexibility could be had, such that innovation is maintained while protecting investors.
What does Huobi do?
Huobi Group was founded in 2013 to innovate in core blockchain technology. Huobi Group holds the following licenses: DLT license, money lending license, and Charity registration in Gibraltar, 007 cryptocurrency exchange license in Japan, Type 4 (advising on securities), Type 9 (asset management), Trust, and TCSP licenses in Hong Kong, and a Trust company license in Nevada, United States. According to Huobi Group co-founder Du Jun, the move to Gibraltar is vital since it aligns with global trends toward compliant growth.
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BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.