Compliance, Stablecoin, Expansion, Huobi’s three-step deployment in Hong Kong

Hong Kong, it's windy.

Embrace the Metaverse, embrace Web3.0, accept DLT, integrate into the encrypted world, connect with NFT, hold hands with stablecoins, and open retail transactions... Hong Kong has ushered in a new narrative and a new outlet, and it has also brought infinite opportunities to entrepreneurs in this industry Opportunity.

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Hong Kong's past, with compliance as the cornerstone

At present, the compliance of Hong Kong's encryption industry is already on the line. The opening of the policy has undoubtedly injected confidence into the market. Before the "Policy Declaration on the Development of Virtual Assets in Hong Kong" in 2022, Hong Kong had already formulated a relatively complete regulatory framework and policies. In that era of cryptocurrency exchange melee, Huobi was already part of Hong Kong’s virtual asset compliance.

As early as 2019, the Hong Kong Securities Regulatory Commission has announced the virtual asset sandbox license system. Virtual asset trading platforms that meet the requirements can actively apply for a license to provide virtual asset trading services for Type 1 (securities trading) and Type 7 licenses. Class (providing automated trading services) regulated activities.

After the Hong Kong Securities Regulatory Commission announced the virtual asset license system, Huobi began to actively prepare for the application for the license, and the Hong Kong Securities Regulatory Commission officially accepted the application in July 2022. Since the establishment of the sandbox license system in 2019, as of March 2021, only four applications have been officially accepted by the Hong Kong Securities Regulatory Commission, which shows that the threshold for preliminary preparation and application requirements is quite high.

In addition, in March 2021, Huobi obtained the Type 4 (Advising on Securities) and Type 9 (Asset Management) licenses issued by the Hong Kong Securities Regulatory Commission, and was allowed to carry out relevant regulated activities. Since 2020 Effective July 31.

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Based on the present, the fire will advance

Since last year, Hong Kong has successively announced a number of friendly policies for the encryption industry, and announced the launch of the "Encryption New Deal". The establishment of these rules is a key step in Hong Kong's efforts to establish itself as a digital asset hub. For this reason, undercurrents are surging in all walks of life in Hong Kong. Huobi has long been optimistic about the encryption market in Hong Kong, and has repeatedly revealed that it will consider operating in the region.

On February 20, Huobi launched the offshore RMB stablecoin TCNH (TrueCNH), which is seen as Huobi’s first move to seize the Hong Kong market. Hong Kong is one of the main circulation places for offshore RMB. The launch of Huobi on TCNH will bring new financial opportunities to users around the world, while helping Hong Kong to rapidly expand the encryption market. Sun Yuchen, a member of Huobi Global Advisory Committee, once said, "I hope to make more contributions to the Hong Kong government's stablecoin regulatory framework."

Immediately afterwards, Justin Sun announced on Twitter that Huobi is preparing to apply for a Hong Kong cryptocurrency trading license. He said that this is an important step for the cryptocurrency exchange and a sign of Huobi’s continued commitment to operating in a compliant and regulated manner. Justin Sun also revealed that Huobi will launch a new exchange, Huobi Hong Kong, in Hong Kong. The new exchange will focus on providing trading services to institutional investors and high-net-worth individuals in Hong Kong.

Sun Yuchen said in an interview, “In the past three years, Hong Kong’s regulatory framework has undergone many changes and has become better, so I have full confidence in the future of encryption compliance in Asia, Hong Kong and even mainland China.” He further stated that the Hong Kong government The stability and predictability of the regulatory environment should be ensured to attract more digital asset companies and investors.

According to Justin Sun, Huobi will continue to expand its business in Hong Kong, and the number of employees in Hong Kong will increase from 50 to 200 by the end of this year.

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Looking to the future, let's look at the power of the East

Looking back at the ups and downs of the encryption market over the past ten years, some analysts believe that it may not be a bad thing that Hong Kong has missed the crazy boom and bust of the cryptocurrency industry.

Founded in Hong Kong and later relocated to the Bahamas, FTX eventually unleashed a multibillion-dollar financial disaster that brought down the entire cryptocurrency industry. Cryptocurrency mining companies that opted to list on Nasdaq instead of the Hong Kong stock exchange are now mostly struggling financially and have been heavily criticized for their negative impact on the environment.

Co-founder of Gemini, an American compliance exchangeCameron WinklevossAccording to the commentary, the next round of bull market will start from Asia. He believes that cryptocurrencies are a global asset class and that the West (actually the US) either accepts it or gets left behind; but the reality is that the US is cracking down on cryptocurrencies today while the East is showing tolerance for cryptocurrencies open minded. Sun Yuchen also said that he is optimistic about the Asian encryption market, and Asia will be the first to recover in this round of bull market.

The cryptocurrency industry has entered reset mode, and this gives Hong Kong a great opportunity to redefine how a Web 3.0 hub should behave. Entrepreneurs in the industry also have a general idea of ​​how to participate in the new narrative of Hong Kong in the future.

Huobi, as an important participant, relies on existing businesses to innovate not only with tokens on the chain, but also with real-world assets, not only for investors, but also for public users. Huobi believes that with compliance as the cornerstone, stable currency as the breakthrough, and talent and innovation as the driving force, it will definitely provide the most realistic and economically influential case for Hong Kong's encryption technology and narrative.

From actively embracing regulatory compliance, to deploying stablecoins, and then to foreseeable business expansion, this is Huobi's three-step strategy for deploying Hong Kong's encryption market. But this is only the beginning of Huobi Hong Kong's encryption story. Huobi firmly believes that Hong Kong has a promising future!