The boost that cryptocurrency had been longing for has finally materialised. Crypto exchanges like Huobi Global continued to expand despite the turbulent bear market. While many of them suffered significant losses, certain notable ones, including Binance, Crypto.com, and Coinbase, continued on their expansion drive. Apparently just joining this list with its most recent announcement is Huobi.
Bitcoin exchange One of the largest token trading platforms in Asia, Huobi Global, said late Friday that it had consented to be acquired by the M&A fund of Hong Kong-based investment firm About Capital Management.
When the acquisition concludes, About will “hold the majority interest” of Huobi, according to a blog post by Huobi Global, a top-10 exchange by trading volume. The exchange said the ownership shift will not have an effect on trading activities.
The announcement follows months of rumors and speculating that Huobi’s founder Leon Li was looking for a buyer for his approximately 60% ownership in the company and was demanding at least $1 billion. The agreement’s terms with About Capital were kept under wraps.
According to the blog post, the exchange is planning an international expansion under the new ownership and will get a “injection of appropriate money in margin and risk provision fund.”
Li, who established Huobi in China in 2013, said in a statement that the exchange’s exit from the Chinese mainland in late 2021 marked the beginning of a push toward globalization that will now pick up speed under About Capital.
How had Huobi Global been doing in the past?
The Financial Transactions and Reports Analysis Centre [FINTRAC] of Canada issued Hbit Technologies Limited, a subsidiary of Huobi Technology Holdings Limited, a Money Services Business [MSB] Registration License in August.
The business is allowed to engage in a number of regulated activities with this license. This covers the trading of cryptocurrencies in Canada, as well as money transfers and exchange transactions.
A Memorandum of Understanding (MoU) was signed later in September by Huobi Global, Huobi Korea, and the government of Busan Metropolitan City. The collaboration will help the city’s local blockchain infrastructure grow.
The exchange was to help supply the essential technology, funding, and research and development for the Busan exchange.
The topic of Huobi has been widely discussed during the past few months. There were unfavorable rumors that Leon Li, the founder of Huobi Group, was selling a significant portion of his ownership. Many people started thinking that the platform will eventually fold, just like its counterparts had.
With the most recent information, however, the businesses appeared to confirm the rumors. If it really fails like its contemporaries, only time will tell.