The Aussie financial regulators reportedly greenlighted one of the leading cryptocurrency platforms – Huobi Group – to register as a digital currency exchange provider in the country. This is the company’s latest expansion step and first in Australia.
Founded in China, Huobi had to move its operations abroad due to the adverse stance against the crypto industry in the world’s most populated nation. It has headquarters in numerous countries, while its main base is in the Seychelles.
Huobi Arrives in ‘The Land Down Under’
According to a recent coverage, the regulatory nod from the Australian Transaction Reports and Analysis Centre (AUSTRAC) enabled Huobi Global to provide cryptocurrency services to local consumers. They can use the platform to purchase and sell digital assets, such as Bitcoin and Ether, in their local currency (the Australian dollar).
At a later stage, Huobi plans to provide Over-the-Counter (OTC) services. Commenting on the move was the firm’s CFO – Lily Zhang:
“We have always made security and compliance our highest priorities, as we believe that only under this principle can we grow alongside the industry to provide professional and secure services to our users.”
Over the years, Huobi secured regulatory approval in a range of nations, including Japan, South Korea, the USA, and Hong Kong. In November last year, it migrated its spot-trading operation to Gibraltar due to the crypto-friendly stance of the local watchdogs.
“Gibraltar, as a highly experienced, sophisticated, and globally recognized international financial services center, fits our needs well,” Du Jun – Co-Founder of Huobi Group – said at the time.
A week ago, the Dubai Virtual Assets Regulatory Authority (VARA) allowed the platform to offer a variety of cryptocurrency products and services to customers in the UAE’s financial hub.
Zhang outlined that Huobi is “pleased to see the growing number of licenses and registrations” the organization receives, which proves its goal to develop the industry and achieve global expansion.
Huobi’s Problems Because of the Bear Market
Similar to Coinbase, Gemini, CryptoCom, and many other rivals, Huobi Group also dismissed some of its workforce. The main reason for the 30% layoff was said to be “the sharp drop in revenue after the removal of all Chinese users.”
A few weeks later, the entity halted its Thailand operations, requesting clients to withdraw all their assets before shutting down permanently.
“After the closure of the Huobi Thailand platform, Huobi Thailand will no longer have any connections nor legal binding with Huobi Group and its affiliates. Huobi Group and its affiliates are not and will not be responsible for any issues regarding to Huobi Thailand,” the company explained.
A month ago, rumors indicated that one of the firm’s Founders – Li Lin – was looking to sell his stake in the exchange. The exec holds more than 50% of the shares.