According to TRON founder Justin Sun, if granted a VASP license, Houbi will launch a new exchange to please regulators.
Will Asian capital “save” the market?
As Kyptos reported, Hong Kong has recently taken a “pivot” move with a new regulatory framework, raising the possibility of China reopening to crypto. Hong Kong has proposed a plan to allow individual investors to trade Bitcoin (BTC), Ethereum (ETH) and several other major coins. This is an important step towards Hong Kong’s goal of becoming a major crypto hub.
This development evokes a very beautiful prospect. The crypto sector will welcome abundant capital flows from China, Hong Kong and the whole of Asia, bringing the market into a new bull season.
That’s why, Justin Sun – TRON blockchain founder and “new owner” of Huobi exchange quickly picked up the trend, immediately planning to move to Hong Kong. “I believe that with transparent and clear regulation, Asian capital will be the driving force and dominating the next bull market,” the founder affirmed.
Huobi is determined to take the lead in the Hong Kong market
Recently, the International Finance Task Force (FATF) has launched a new policy on the prevention of money laundering and terrorism. Accordingly, crypto institutions in Hong Kong must apply for a VASP license by March 1.
Speaking to the radio CNBCMr. Sun is “100% confident” that the Hong Kong Securities and Futures Commission (SFC) will license Huobi as a virtual asset service provider (VASP) here. If approved, Huobi will officially establish the name of the organization in June and the Huobi Hong Kong exchange will also be launched soon.
Share with CoinDeskJustin similarly stated:
“Finally, since Huobi is one of the leading blockchain exchanges in the region… I am sure it will be licensed soon.”
According to Justin, Huobi is the first crypto exchange to comply with the VASP licensing guidelines. The organization is also in dialogue with the SFC to advise on the development of a regulatory framework, especially for stablecoins. Blockchain technology is intended to set a global standard for financial interactions and therefore an international regulatory framework is absolutely necessary for the cryptocurrency industry.
Sun also reiterated the view that China is looking at Hong Kong as a prototype, before putting any industry under management on the mainland. Mr. Sun explained:
“Beijing considers Hong Kong to be one of the crypto-testing zones. That’s why they want to see Hong Kong do this first. If the results are positive, China may change its policy.”
Extracting data from CoinMarketCap, Huobi is currently ranked 15th in terms of overall trading volume. In addition, the 8th exchange in trading volume, OKX, has also applied for a license in Hong Kong.
In fact, the draft crypto regulation published by Hong Kong last week is completely “disadvantageous” for exchanges like Huobi or OKX. The reason is, exchanges will be more strictly controlled and not freely provide staking products, derivatives trading, OTC, farming… as before. But all are just lying on the paper and have to wait until June 1 to get the final results.