Huobi Global recently announced the relocation of its Asia headquarters to Hong Kong. The exchange is shifting from Singapore, as stated by Justin Sun in an interview.
Huobi Global intends to go ahead with the move because of Hong Kong’s regulatory relaxation. Even more than that, regulators across the world have been heavily pushing back crypto exchanges.
The SEC is planning on introducing a framework that allows a handful of tokens. Similarly, China has outright blocked crypto transactions in the nation. Amid the struggle, Hong Kong has come forward with a relaxed regulatory environment that invites Web3 companies from China.
The financial hub can emerge as the laboratory for the policymakers that tests out blockchain’s true potential. The proposal by the nation stipulates the centralized digital currency exchanges running in the city.
Its requirements cover crucial areas like safe assets’ custody, conflicts of interest, auditing and accounting, cybersecurity, AML, etc. Their regulatory requirements are already open for consultation and will run till March 31st.
The setup can help startups establish businesses in the nation. It will result in a prosperous Web3 ecosystem. The news has caused a positive response in Asia-Pacific along with the global Web3 ecosystem.
The news of Singapore based crypto exchange Huobi shifting its headquarters also made headlines since the exchange was already the talk of the town. The crypto exchange had recently laid off 20% of its staff because of the crypto bear market worsening. Furthermore, it can be said that the laying off of employees is a pain in the short term. However, later on, it will fetch huge advantages for the company.
However, Huobi has announced that after the shifting is done, the exchange will rehire the staff. Since the exchange has already initiated a public consultation on cryptocurrency licensing, users in Hong Kong are already attracted to the notion.