Huobi Token (HT) has surged by 15% following an announcement by HuobiGlobal Advisor Justin Sun, founder of Tron, that the company is applying for a crypto trading license in Hong Kong.
This move is being seen as a major step forward for the cryptocurrency exchange and a sign of its commitment to operating in a compliant and regulated manner.
CoinMarketcap’s data shows that HT is presently trading at $6.02, having increased by 16% over the past 24 hours and experiencing a noteworthy 146.30% growth in the trading volume during that same period.
Sun made an announcement through his Twitter account that was received with enthusiasm by traders and investors who seek a dependable platform to purchase, sell, and store digital assets.
With the new license, the exchange can broaden its service and product offerings to customers in Hong Kong, expanding its range of cryptocurrency trading and investment options.
Huobi To Launch New Exchange With Regulatory Compliance
Huobi is also launching a new exchange in Hong Kong named Huobi Hong Kong, in addition to the licensing news. The exchange will be fully compliant with local regulations and will provide a variety of trading pairs and services to its customers.
According to Sun, the new exchange will focus on offering trading services to institutional investors and high-net-worth individuals in Hong Kong. It positions the exchange as a reliable and secure platform for bigger investors in Asia seeking to enter the cryptocurrency market.
The move by Huobi to apply for a crypto trading license in Hong Kong comes at a time when many countries are tightening their regulations around cryptocurrencies.
Additionally, as reported by TronWeekly, on February 20th, it was announced in a press release that the Securities and Futures Commission (SFC) of Hong Kong is seeking public feedback on the regulatory standards for crypto asset trading platforms.
As part of the proposed licensing system, all centralized virtual asset trading platforms, either operating in Hong Kong or catering to Hong Kong investors, must acquire a license from the SFC by June 1st, 2023.
It marks a unique and specific approach to regulating virtual assets within Hong Kong, with a new set of rules proposed by the SFC for crypto asset trading platforms.
However, by taking a proactive approach, Huobi is positioning itself as a leader in the industry and showing its commitment to operating in a compliant and responsible manner.
However, the considerable increase in the value of HT subsequent to Sun’s announcement indicates a significant level of enthusiasm and expectation within the market regarding what Huobi has planned for its clientele.