Huobi Global was the largest exchange in China before the country started cracking down on cryptocurrencies and declared all crypto-related activities illegal. The exchange is now closing its business in China and moving to Gibraltar.
In an announcement on November 8, Huobi Group stated that it had received approval from the Gibraltar Financial Services Commission (GFSC) to relocate its spot trading operations following the crypto crackdown in China.
Huobi to move to Gibraltar
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The GFSC has authorized Huobi to start shifting its spot-trading operations to Huobi Technology (Gibraltar) Co. Through this transition, Huobi Group will now offer spot trading services. Huobi Gibraltar is a centralized digital asset exchange that is fully regulated by the GFSC.
Speaking on the matter, the co-founder of Huobi Group, Du Jun, stated that,
This marks a key milestone in Huobi’s global expansion efforts. The global cryptocurrency industry is moving towards compliant growth, and we recognize the need to align our business with this trend.
Jun further noted that Gibraltar had much potential because its market was a “globally recognized international financial services centre.”
Gibraltar has made notable strides in as far as Bitcoin and crypto adoption are concerned. Following this growth, many firms have been rushing to the country to benefit from the favourable regulatory climate.
Huobi is not the first crypto player to move to the country due to friendly crypto regulations. Some industry participants have stated that Gibraltar has created a good momentum in becoming a “crypto hotspot” following its progress to create a robust crypto regulatory framework.
Crypto firms leaving China
After China introduced harsh laws regarding cryptocurrencies, many crypto firms announced they would be leaving the country. Huobi is among the firms leaving, following a September 24 agreement by the board of directors who voted to wind down operations in China and focus on overseas markets. Other firms such as Binance, BTC.com and Bitmain have also followed suit and have already barred new users in China from registering on the platform. Besides crypto brokerage firms, mining firms in China have also shut down. Crypto mining pools and manufacturers of mining equipment have also left the country.
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