Huobi recently became the latest digital asset exchange network to receive provisional approval from the Dubai Virtual Assets Regulatory entity. This approval allows Huobi to bring virtual asset trading items and services to pre-qualified investors and professional financial service providers.
The Asian digital asset network, Huobi, has become the latest digital asset services company to receive provisional approval from the Dubai Virtual Assets Regulatory Authority (VARA).
According to a statement unveiled by the entity in question, this approval grants the United Arab Emirates (UAE)-based entity the green light to offer a complete suite of virtual asset exchange products and features.
Before giving Huobi its approval, VARA had given another provisional license to a Seychelles-based crypto trading network named OKX. Also, before this situation, the regulator had issued approvals for Binance, FTX, and Coinmena.
Meanwhile, the crypto exchange said in a statement that it would be targeting professional investors. Concerning spot and over-the-counter (OTC) trading services, Huobi stated that these features would get an extension to a limited group of pre-qualified investors and financial service providers.
Regional Headquarters
Huobi also suggested that getting the provisional license would open new doorways for setting up the regional headquarters in an area like Dubai.
Regarding the provisional license, Huobi Group CFO Lily Zhang stated that the Dubai Administration had shown total commitment to turning the Emirate into a global haven for the future digital economy and being at the frontlines of financial improvements in the sector. Huobi had shown a lot of optimism regarding the potential and possibilities of this region.
Zhang also expressed that her organization intends to work hard to foster the evolution of the virtual currency industry in that location.
Besides the license from VARA, Huobi explained in the statement that it has also achieved a green light in other regions such as South Korea and Gibraltar.
Huobi Acquired an MSB License
A subsidiary of the digital asset exchange Huobi, named HBIT Inc, has received its Money Services Business (MSB) license from the United States Financial Crimes Enforcement Network.
Seychelles-based Huobi expressed that the license created a foundation for leading cryptocurrency-related businesses in the United States of America in the future as part of its strategic goals. According to a report by CoinGecko, the digital asset exchange is one of the most prominent players in the sector, with more than $1 billion in volume in the last day.
However, the license does not allow this entity to bring exchange services linked to digital assets, as this action would need a money transmitter license. The entity expressed that it hopes to give a compliant digital asset service.
Huobi also expressed that its subsidiaries in Hong Kong have also received asset management and securities advisory licenses from the country’s Securities and Futures Commission.
The subsidiaries also try hard to apply for a license to bring automated trading and securities trading services to become a fully compliant digital asset exchange headquartered in Hong Kong.
By: Jenson Nuñez
