Huobi Group a Bitcoin (BTC) technology
Huobi Group a Bitcoin (BTC) technology firm established in 2013, has relocated its spot-trading business to Gibraltar as a precautionary measure in light of China’s recent cryptocurrency clampdown. Gibraltar’s Financial Services Commission (GFSC) has given Huobi the green light to operate under the jurisdiction’s new Distributed Ledger Technology (DLT) regulatory framework.
The move allowed Huobi to operate under a more favorable regulatory regime and obtain a DLT license from the Gibraltar Financial Services Commission (GFSC). This is a significant development for the firm, which has been forced to adjust its business model several times in response to changing Chinese regulations.
Jeff Mei, head of the global strategy at Huobi Group, underlined that:
“Gibraltar entity will offer spot trading services globally”.
He also added that Huobi already had a local office in Gibraltar and was moving some of its technology infrastructure and cloud hosting to the territory. The company could also expand its local team as users migrate.
Huobi has been one of the most successful crypto exchanges in recent years, and its move to Gibraltar is likely to be welcomed by the crypto community. The DLT license gave Huobi a level of legitimacy that it lacked in the past, and it will be interesting to see how the firm develops in the coming months.
It is clear that Huobi is committed to operating within the law, and its move to Gibraltar is a positive step for the company. It remains to be seen how Chinese regulators will respond to the move, but, likely, they will eventually come to an accommodation with Huobi.
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