Huobi has received licenses in New Zealand and the United Arab Emirates, to provide regulated crypto trading services.
Huobi Group was granted an Innovation License by the Dubai International Financial Centre (DIFC) on Friday, making it the company’s first license in the DIFC.
Huobi Group chief finance officer Lily Zhang said on Monday that the DIFC license is not a trading license, but rather allows Huobi to attract technological firms to set up shop in Dubai. The license grants access to the local tech ecosystem as well as preferential treatment for technological research and development, money flows, and taxation.
Huobi also intends to apply for a Virtual Asset MVP License from Dubai’s Virtual Assets Regulatory Authority (VARA), which will allow it to provide a full range of cryptocurrency exchange goods and services. Zhang made the following observation:
“We do not have other licenses in Dubai. We do have a small office there that caters to some key account and institutional customers in the Middle East region. We are, however, applying for provisional approval for a Virtual Asset MVP License from the Dubai VARA.”
Huobi has gained registration on New Zealand’s Financial Services Provider Register (FSPR) to offer its crypto trading services in the country, in addition to increasing its footprint in the UAE.
Huobi Group’s FSPR registration is the first step in expanding its cryptocurrency trading business in New Zealand, as all exchanges must register on the platform in order to provide trading services to local users.
Huobi’s local subsidiary, HBGL New Zealand Limited, is now licensed to provide regulated foreign currency exchange and money or value transfer services in New Zealand. Huobi can now offer asset management and over-the-counter trading as a result of the registration.
“In New Zealand, cryptocurrencies themselves are not considered legal tender, but regulators treat cryptocurrency exchanges, brokers and other businesses offering investment opportunities much like they do other financial services providers,” Zhang said in a statement.
Huobi’s newest regulatory milestones came after Huobi Thailand, the company’s Thailand-based affiliate, announced in mid-June that it was permanently closing after the Thai Securities and Exchanges Commission revoked the firm’s operating license. By July 1, the local firm intends to cease operations.
“We would like to reiterate that Huobi Thailand was not a part of Huobi Global, but rather a separate entity formed together with a local partner in 2019 as a part of our Huobi Cloud division,” a spokesperson for Huobi said
Huobi Thailand’s trade volumes were not given exact figures by the spokesperson, who merely stated that it was a “quite small and inconsequential part” of Huobi’s overall operation.
Thailand’s trade volumes were only a “very small and inconsequential part” of Huobi’s overall operation, according to the company.