Huobi, one of the largest cryptocurrency exchange platforms in China, appears to be looking to further expand its business following the recent regulatory approval in Hong Kong.
According to the official announcement made by Huobi Technology Holdings Ltd., the subsidiary of the asset management company has received approval from the Hong Kong Securities and Futures Commission to launch an asset management portfolio.
The news is a follow-up to the fact that Huobi acquired both Type 4 and Type 9 licenses from SFC as early as July 2020. In Hong Kong, a Type 4 license allows a company to act as a securities consultant, while a Type 9 license covers asset management.
The company, dubbed Huobi Asset Management, is now seeking to unlock three states in the cryptocurrency following SFC approval, according to Chinese media reports. However, the launch will be subject to the foundation’s compliance with additional clauses issued by the Saudi Finance Fund.
In a tweet on Thursday, Beijing-based reporter Colin Wu pointed out that Huobi’s entry into the crypto asset management arena could prompt institutional investors in Asia to consider investing in cryptocurrency.
Wu also mentioned that Huobi’s planned crypto asset management fund will include both Bitcoin (BTC) and Ether (ETH).
According to crypto research firm Messari, Huobi is second only to Binance in true immediate size.
The SFC’s Huobi crypto asset management license comes amid reports that Hong Kong regulators are close to banning cryptocurrency retailing. In fact, Huobi is among a group of global cryptocurrency exchanges challenging the legality of this move.
Following China’s ban on cryptocurrency trading and the first currency offering in 2017, many Chinese exchanges moved their offices to another location, with Hong Kong and Japan prioritizing destinations at the time.