One of Huobi’s co-founders announced that the Chinese cryptocurrency exchange is preparing to re-enter the US market more than two years after ceasing operations to comply with laws.
However, after making mistakes the first time around, the corporation may not build an exchange and instead focus on other sectors like asset management.
As Du explained, “We tried to enter the United States market in 2018, but we promptly withdrew since we didn’t have a strong commitment to the market at the time, and we didn’t have a solid management team in the United States.” The traditional financial sector, he predicts, will have a greater impact on asset management than it has on the exchange.
Huobi’s re-entry into the United States will begin with the launch of a new business. However, they could face competition from companies like Coinbase if it returns to the US market. According to CoinGecko, Huobi is one of the top ten largest cryptocurrency exchanges in the world by trading volume.
Huobi’s Come Back
In 2018, Huobi opened its first cryptocurrency exchange in the United States. The following year, the firm announced that user accounts in the United States would be frozen and that it will return to the market in a “more integrated and impactful” manner.
The Huobi Group owns Huobi Tech, a Hong Kong-listed exchange and asset management company.
Following several years of tightening crypto regulation in China, Huobi’s home market, the US drive is part of a larger international development plan. Last year, Beijing attempted to completely eliminate cryptocurrency mining in the country and close loopholes that permitted Chinese citizens to trade.
Huobi will retire current mainland Chinese customers’ accounts by the end of 2021. It will establish its Asia headquarters in Singapore.
Huobi has lost roughly 30% of its revenue as a result of the Chinese users being shut off, according to Du. However, the company’s foreign expansion has been boosted as a result of this. In addition to its U.S. drive, it is looking into establishing a European headquarters.
“We have no alternative but to employ our whole might to move forward in our worldwide plan,” Du stated when asked how much resources or staff will be for the international market.
Regulation of Chinese
Du complimented China’s strict cryptocurrency regulations for addressing gambling and money laundering issues. According to the Huobi co-founder, the regulation protects smaller investors. Other countries, however, should not adopt China’s strategy, he said, because investors in other markets may be more experienced.
Extreme individuals have jumped from the regulator’s building in China when they lose money. Also, investors are less mature when they lose money. When it came to the Covid restriction, government officials used the same procedure. There have been steps to protect the public’s safety, Du said.
In other markets, “seasoned investors” can handle the risks of risky investments, so governments don’t need to enforce strict laws. ”
Governments scrutinize cryptocurrency around the world, with discussions ranging from trading to taxation. India suggested a 30% tax on any revenue generated by the transfer of digital assets earlier this month. Meanwhile, the United States is still debating how to control cryptocurrency.
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